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In: Accounting
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 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 eTextbook and Media List of Accounts Attempts: 0 of 15 used Part 2 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.) FLINT, INC Balance Sheet $ : $ eTextbook and Media List of Accounts Attempts: 0 of 15 used Part 3 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
| Account titles and Explanations | Debit | Credit |
| Fair Value Adjustment | $ 2,200 | |
| Unrealized Holding Gain / Loss - Equity | $ 2,200 | |
| (To record the portfolio at fair value ) |
|
Balanace Sheet December31,2020 |
|
| Current Assets : | |
| Debt investments | $ 109,000 |
| Stockholder's Equity : | |
| Common Stock | $ 0 |
| Additional Paid-in-Capital | $ 0 |
| Retained Earnings | $ 0 |
| $ 0 | |
| Add: | |
|
Accumulated other Comprehensive
Income ( $ 800 + $ 2,200) |
$ 3,000 |
| Total Stockholder's Equity | $ 3,000 |
| Date | Account titles and Explanations | Debit | Credit |
| Jan 20, 2021 | Cash | $ 30,200 | |
| Loss on Sales of Investments (or) Loss on Sale of Securities | $ 4,800 | ||
| Debt Investments (or) Available for Sale Securities | $ 35,000 |
ekkarill92 answered 2 years agoRelated Solutions
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...
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 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...
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...
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...
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