At December 31, 2025, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. On January

Question:

At December 31, 2025, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.

On January 20, 2026, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees.

Instructions

a. Prepare the adjusting entry at December 31, 2025, to report the portfolio at fair value.

b. Show the balance sheet presentation of the investment-related accounts at December 31, 2025 (Ignore notes presentation.)

c. Prepare the journal entry for the 2026 sale of security A.

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Related Book For answer-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Jun 25, 2023 01:12 AM

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At December 31, 2025, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. On January

Question:

Security A B C Total Cost $17,500 12,500 23,000 $53,000 Fair Value $15,000 14,000 25,500 $54,500 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) ($2,500) 1,500 2,500 1,500 400 $1,100

Step by Step Answer:

a The portfolio should be reported at the fair value of 54500 Since the cost ...View the full answer

Intermediate Accounting

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