5

Current Attempt in Progress At December 31, 2020, the available for sale debt portfolio for Wildhorse, Inc. is as follows. Security Cost Unrealized Gain (Loss) Fair Value A $28,000 $24,000 $(4.000) B 20,000 22.400 2,400 36,800 40.800 4,000 Total $84,800 $87,200 2,400 640 Previous fair value adjustment balance-D Fair value adjustment-Dr. $1.760 On January 20, 2021, Wildhorse, Inc sold security for $24,160. The sale proceeds are net of brokerage foes. Prepare the adjusting entry at December 31, 2020, to report the portfolio atfair 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 Fair Value Adjustment 1760 1760 Unrealized Holding Gain or Loss - Equity Show the balance sheet presentation of the investment related accounts at December 31, 2020. (Do not leave any answer field blank. Enter for amounts WILDHORSE, INC Balance Sheet For the Year Ended December 31, 2020 > > Prepare the journal entry for the 2021 sale of security A. (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) Date Account Titles and Explanation Debit Credit Jan. 20. 2021 Cash 24160 Loss on Sale of investments 3840 Fair Value Adjustment 28000