At December 31, 2020, the available-for-sale debt portfolio for Shamrock, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Part 1 Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.) SHAMROCK, INC Balance Sheet $ : $ 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 20, 2021
At December 31, 2020, the available-for-sale debt portfolio for Shamrock, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $32,375 $27,750 $(4,625 ) B 23,125 25,900 2,775 C 42,550 47,175 4,625 Total $98,050 $100,825 2,775 Previous fair value adjustment balance—Dr. 740 Fair value adjustment—Dr. $2,035 On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees. Part 1 Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.) SHAMROCK, INC Balance Sheet $ : $ 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 20, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
At December 31, 2020, the available-for-sale debt portfolio for Shamrock, Inc. is as follows.
On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.
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Security
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Cost
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Fair Value
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Unrealized
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| A | $32,375 | $27,750 | $(4,625 | ) | |||
| B | 23,125 | 25,900 | 2,775 | ||||
| C | 42,550 | 47,175 | 4,625 | ||||
| Total | $98,050 | $100,825 | 2,775 | ||||
| Previous fair value adjustment balance—Dr. | 740 | ||||||
| Fair value adjustment—Dr. | $2,035 |
On January 20, 2021, Shamrock, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.
Part 1
Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.)
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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 0 for the amounts.)
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