Exercise 17-9 (Part Level Submission) At December 31, 2017, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost Fair Value A $23,625 16,875 31,050 $71,550 B Unrealized Gain (Loss) $(3,375) 2,025 3,375 $20,250 18,900 34,425 $73,575 Total 2,025 540 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $1,485 On January 20, 2018, Pharoah, Inc. sold security A for $20,385. The sale proceeds are net of brokerage fees. (a) Your answer is correct. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Fair Value Adjustment 1485 Unrealized Holding Gain or Loss - Equity 1485 (b) Show the balance sheet presentation of the investment-related accounts at December 31, 2017. (Do not leave any answer field blank. Enter o for amounts.) PHAROAH, INC Balance Sheet $ Exercise 17-9 (Part Level Submission) At December 31, 2017, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost Fair Value A $23,625 16,875 31,050 $71,550 B Unrealized Gain (Loss) $(3,375) 2,025 3,375 $20,250 18,900 34,425 $73,575 Total 2,025 540 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $1,485 On January 20, 2018, Pharoah, Inc. sold security A for $20,385. The sale proceeds are net of brokerage fees. (a) Your answer is correct. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Fair Value Adjustment 1485 Unrealized Holding Gain or Loss - Equity 1485 (b) Show the balance sheet presentation of the investment-related accounts at December 31, 2017. (Do not leave any answer field blank. Enter o for amounts.) PHAROAH, INC Balance Sheet $