At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows. Security   Cost   Fair Value   Unrealized Gain (Loss) A   $ 27,125   $ 23,250   $( 3,875 ) B   19,375   21,700   2,325   C   35,650   39,525   3,875   Total   $ 82,150   $ 84,475   2,325   Previous fair value adjustment balance—Dr.   620   Fair value adjustment—Dr.   $ 1,705   On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees. (a)     Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair 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 0 for the amounts.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At December 31, 2020, the available-for-sale debt portfolio for Whispering, Inc. is as follows.

Security
 
Cost
 
Fair Value
 
Unrealized
Gain (Loss)
A   $ 27,125   $ 23,250   $( 3,875 )
B   19,375   21,700   2,325  
C   35,650   39,525   3,875  
Total   $ 82,150   $ 84,475   2,325  
Previous fair value adjustment balance—Dr.   620  
Fair value adjustment—Dr.   $ 1,705  

On January 20, 2021, Whispering, Inc. sold security A for $ 23,405. The sale proceeds are net of brokerage fees.

(a)

 
 
Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair 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 0 for the amounts.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
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