Prepare the journal entry for the 2021 sale of security A

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At December 31, 2020, the available-for-sale debt portfolio for Kingbird, 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, Kingbird, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.

 

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
 
 
 
 
 
 
 
 
 
 
 
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