Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Pina Corp. reported net income of $76.300 for 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Practice Exercise 17-04 (Part Level Submission)
At December 31, 2020, the available-for-sale debt portfolio for Pina Corp. is as follows.
Unrealized Gain
(Loss)
$(1,800 )
1,600
Securities
Cost
Fair Value
Good Co. Bonds
%$428,500
$26,700
Home Co. Bonds
Grand Inc. Debentures
28,600
30,200
41,700
42,700
1,000
98,800
99,600
80
Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Pina Corp. reported net income of $76,300 for 2020.
- (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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Transcribed Image Text:Practice Exercise 17-04 (Part Level Submission) At December 31, 2020, the available-for-sale debt portfolio for Pina Corp. is as follows. Unrealized Gain (Loss) $(1,800 ) 1,600 Securities Cost Fair Value Good Co. Bonds %$428,500 $26,700 Home Co. Bonds Grand Inc. Debentures 28,600 30,200 41,700 42,700 1,000 98,800 99,600 80 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Pina Corp. reported net income of $76,300 for 2020. - (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 Click if you would like to Show Work for this question: Open Show Work
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