Question

At December 31, 2020, the available-for-sale debt portfolio for Skysong, Inc. is as follows. Unrealized Gain (Loss) $14,250) 2,550 4,250 Security Cost Fair Value $29,750 $25,500 21,250 23,800 39,100 43,350 Total $90,100 $92,650 Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. 2,550 680 $1,870 On January 20, 2021, Skysong, Inc. sold security A for $25,670. 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 for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

Amount Answers |4) Calculation of portfolio at fair valeco particulars Fair value of portfolio $ 92,650 Less cost of portfolio $ 90,100) unxelahzod holding gain $2,550 Less Previous year fair value Adly balance ($ 680) $ 1,870 Adjusting entry at 31 Dec 2020 Date particulars Taebit 2020) Securities fair value adj. available for sale 4 $ 1,870 To un realized holding gainſtoss - Equity credit Dec-21 $1870 Being the adjustingcoulay for yeporting post folio af fair value] xxx $2,550 B) Skeysong. Ine. Balance sheet at 31 Dec 2020. Current Asseta Available for sale securities $92,650 stock holders equity :- common stock Addikon-paid-len Capital Relained earnings Add: Accumulated other comprehensive income (4680+ $1870) Total slock holders equite c) Journal entry for Sale of Security. A. for 25,670 Datel particulars - Debit credit 2021 cash Ale DR $95670 Jaw-ro Loss on sale of securities Ale or 1$ 4,080 TO Available for sale Securities $ 29,750 Being the sale of Security A et lousy