At December 31, 2019, the held for collection and selling debt portfolio for Steffi Graf SA is as follows On January 20, 2020, Steffi Graf SA sold security A for not 15,100 The sale proceeds are net of brokerage fees Instructions a Prepare the adjusting entry at December 31, 2019, to report the por...

At December 31, 2019, the held-for-collection and selling debt portfolio for Steffi Graf SA is as follows.

Question:

At December 31, 2019, the held-for-collection and selling debt for Steffi Graf SA is as follows.

Unrealized Gain (Loss) (€2,500) Fair Value Security Amortized Cost €17,500 €15,000 12,500 1,500 2,500 1,500 14,000

On January 20, 2020, Steffi Graf SA sold security A for ‚¬15,100. The sale proceeds are net of brokerage fees.
Instructions
a. Prepare the adjusting entry at December 31, 2019, to report the portfolio at fair value.
b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2019. (Ignore notes presentation.)
c. Prepare the journal entry for the 2020 sale of security A.

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...

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a The portfolio should be reported at the fair value of 54500 Since the cost of the portfolio is 530...View the full answer

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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

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

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Question Posted: Nov 23, 2017 09:23 AM

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At December 31, 2019, the held-for-collection and selling debt portfolio for Steffi Graf SA is as follows.

Question:

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

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a The portfolio should be reported at the fair value of 54500 Since the cost of the portfolio is 530...View the full answer

Intermediate Accounting IFRS

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