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E17-9B (Available-for-Sale Securities Entries and Financial Statement Presentation) At December 31, 2014, the available-for-sale equity portfolio for Zorro Foods Corp. is as follows. Security Cost Fair Value Apple $ 33,600 $ 31,000 Banana 175,000 174,000

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E17-9B (Available-for-Sale Securities Entries and Financial Statement Presentation) At December 31, 2014, the available-for-sale equity portfolio for Zorro Foods Corp. is as follows.;Security Cost Fair Value;Apple $ 33,600 $ 31,000;Banana 175,000 174,000;Crisp 59,400 68,500;Total $268,000 $273,500;December 31, 2013, securities fair value adjustment balance?Dr. 5,400;On January 20, 2015, Zorro sold Apple for $31,100. The sale proceeds are net of brokerage fees.;Instructions;(a) Prepare the adjusting entry at December 31, 2014, to report the portfolio at fair value.;(b) Show the balance sheet presentation of the investment related accounts at December 31, 2014.;(Ignore notes presentation.);(c) Prepare the journal entry for the 2015 sale of Apple.

 

Paper#78459 | Written in 18-Jul-2015

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