At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows.

Security	Cost	Fair Value	Unrealized Gain (Loss)
A	$23,625	$20,250	$(3,375	)
B	16,875	18,900	2,025
C	31,050	34,425	3,375
Total	$71,550	$73,575	2,025
Previous fair value adjustment balance—Dr.			540
Fair value adjustment—Dr.			$1,485

On January 20, 2021, Pharoah, Inc. sold security A for $20,385. The sale proceeds are net of brokerage fees.

Prepare the adjusting entry at December 31, 2020, 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

Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.)

PHAROAH, INC
Balance Sheet

Current assets

(got wrong) ______

Stockholders Equity

Common stock 0

APIC 0

Retained earnings 0

add

Accumulated other comprehensive income _____

Total stockholder's equity _____

Prepare the journal entry for the 2021 sale of security A. (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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 20, 2021

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

At December 31, 2020, the available-for-sale debt portfolio for Concord, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Concord, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $33,250 $28,500 $(4,750) B 23,750 26,600 2,850 C 43,700 48,450 4,750 Tota l$100,700 $103,550 2,850 Previous fair value adjustment balance—Dr .760 Fair value adjustment—Dr .$2,090 On January 20, 2021, Concord, Inc. sold security A for $28,690. The sale proceeds are net of brokerage fees. (a) Prepare the adjusting entry at December 31, 2020, to report the...

At December 31, 2020, the available-for-sale debt portfolio for Flint, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Flint, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $35,000 $30,000 $(5,000 ) B 25,000 28,000 3,000 C 46,000 51,000 5,000 Total $106,000 $109,000 3,000 Previous fair value adjustment balance—Dr. 800 Fair value adjustment—Dr. $2,200 On January 20, 2021, Flint, Inc. sold security A for $30,200. The sale proceeds are net of brokerage fees. Part 1 Prepare the adjusting entry at December 31, 2020, to report the...

At December 31, 2020, the available-for-sale debt portfolio for Teal, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Teal, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $25,375 $21,750 $(3,625 ) B 18,125 20,300 2,175 C 33,350 36,975 3,625 Total $76,850 $79,025 2,175 Previous fair value adjustment balance—Dr. 580 Fair value adjustment—Dr. $1,595 On January 20, 2021, Teal, Inc. sold security A for $21,895. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2020, to report the portfolio at...

At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,600 $16,000 $(1,600 ) B 11,100 15,500 4,400 C 24,000 25,800 1,800 Total $52,700 $57,300 4,600 Previous fair value adjustment balance—Dr. 500 Fair value adjustment—Dr. $4,100 On January 20, 2021, Crane, Inc. sold security A for $16,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $124,000 and in 2021 of...

At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows. Security Cost...

At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,100 $14,600 $(2,500 ) B 12,500 15,100 2,600 C 22,500 26,000 3,500 Total $52,100 $55,700 3,600 Previous fair value adjustment balance—Dr. 400 Fair value adjustment—Dr. $3,200 On January 20, 2021, Cullumber, Inc. sold security A for $14,700. The sale proceeds are net of brokerage fees. Cullumber, Inc. reports net income in 2020 of $123,000 and in 2021 of...

Question 15 At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:...

Question 15 At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows: Security Cost Fair Value Unrealized Gain (Loss) A $62,125 $53,250 $(8,875 ) B 44,375 49,700 5,325 C 81,650 90,525 8,875 Total $188,150 $193,475 5,325 Previous fair value adjustment balance—Dr. 1,420 Fair value adjustment—Dr. $3,905 On January 20, 2018, Bramble, Inc. sold security A for $53,605. The sale proceeds are net of brokerage fees. Bramble Inc. reports net income in 2017 of $426,000 and in...

Company A has the following portfolio of Available for sale securities at 12/31/17: Security Cost Fair...

Company A has the following portfolio of Available for sale securities at 12/31/17: Security Cost Fair Value ABC Inc. Bonds $35,000 $36,000 XYZ Corp Bonds $25,000 $28,000 DEF Co. Bonds $20,000 $21,000 PQR Inc. Bonds $20,000 $22,000 All these investments were purchased in 2017. In 2018, Company A sold the PQR Inc. bonds for $26,000. The remaining investments were still held at 12/31/18 and had the following fair values: ABC bonds $34,000, XYZ Corp bonds $29,000 and DEF Co. bonds...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares of Company A common stock $ 1,070,600 $ 980,000 14,000 shares of Company B common stock 318,750 308,000 35,000 shares of Company C common stock 1,325,500 1,281,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 7,000 shares of Company B common stock for $158,375 less a brokerage fee of $3,100. Apr. 17 Purchased 20,000...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 80,000 shares of Company A common stock $ 1,039,600 $ 920,000 28,000 shares of Company B common stock 338,750 328,000 34,000 shares of Company C common stock 1,360,500 1,311,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 14,000 shares of Company B common stock for $168,375 less a brokerage fee of $3,400. Apr. 17 Purchased 21,000...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost...

Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 70,000 shares of Company A common stock $ 1,046,600 $ 915,000 42,000 shares of Company B common stock 352,750 342,000 41,000 shares of Company C common stock 1,385,000 1,332,875 Stoll enters into the following long-term investment transactions during year 2017. Jan. 29 Sold 21,000 shares of Company B common stock for $175,375 less a brokerage fee of $3,200. Apr. 17 Purchased 22,000...

Subjects