At December 31, 2017, the available-for-sale debt portfolio for Waterway Corp. is as follows: Security A B

At December 31, 2017, the available-for-sale debt portfolio for Waterway Corp. is as follows:

Transcribed Image Text:

Security A B C Total Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. Cost $28,875 20,625 37,950 $87,450 Fair Value $24,750 23,100 42,075 $89,925 Unrealized Gain (Loss) $(4,125) 2,475 4,125 2,475 660 $1,815 On January 20, 2021, Carla, Inc. sold security A for $24,915. 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 O for the amounts.) Account Titles and Explanation Debit Credit Security A B C Total Previous fair value adjustment balance- Dr. Fair value adjustment-Dr. Cost $28,875 20,625 37,950 $87,450 Fair Value $24,750 23,100 42,075 $89,925 Unrealized Gain (Loss) $(4,125) 2,475 4,125 2,475 660 $1,815 On January 20, 2021, Carla, Inc. sold security A for $24,915. 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 O for the amounts.) Account Titles and Explanation Debit Credit