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Securities Entries and Financial Statement Presentation

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Securities Entries and Financial Statement Presentation;(Available-for-Sale Securities Entries and Financial Statement Presentation) At December 31, 2012, the available-for-sale equity portfolio for Wenger, Inc. is as follows.;Security;Cost;Fair Value;Unrealized Gain (Loss);A;$17,500;$15,000;($2,500);B;12,500;14,000;1,500;C;23,000;25,500;2,500;Total;$53,000;$54,500;1,500;Previous fair value adjustment balance?Dr.;200;Fair value adjustment?Dr.;$1,300;On January 20, 2013, Wenger, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees.;Instructions;(a) Prepare the adjusting entry at December 31, 2012, to report the portfolio at fair value.;(b) Show the balance sheet presentation of the investment related accounts at December 31, 2012.;(c) Prepare the journal entry for the 2013 sale of security A.

 

Paper#28651 | Written in 18-Jul-2015

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