At December 31, 2014, the available-for-sale equity portfolio for XYZ Corp. is as December 31, 2013, securities

Question:

At December 31, 2014, the available-for-sale equity portfolio for XYZ Corp. is as

Follows. Security Fair Value Cost Stock-A $33,600 $31,000 174,000 68,500 Stock-B 175,000 Stock-C 59,400 $268,000 Total $

December 31, 2013, securities fair value adjustment balance-Dr. 5,400
On January 20, 2015, XYZ sold stock-A for $31,100. The sale proceeds are net of brokerage fees.
Prepare the adjusting entry at December 31, 2014, to report the portfolio at fair value.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...