E17.6 (LO 1) (HFCS Debt Securities Entries and Financial Statement Presentation) At December 31, 2022, the held-for- collection and selling debt portfolio for Steffi Graf SA is as follows. Security A B C Total Amortized Cost Fair Value €17,500 €15,000 12,500 14,000 23,000 25,500 €53,000 €54,500 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) (€2,500) 1,500 2,500 1,500 400 €1,100 On January 20, 2023, Steffi Graf SA sold security A for €15,100. Instructions a. Prepare the adjusting entry at December 31, 2022, to report the portfolio at fair value. b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2022. (Ignore notes presentation.) c. Prepare the journal entry for the 2023 sale of security A.
E17.6 (LO 1) (HFCS Debt Securities Entries and Financial Statement Presentation) At December 31, 2022, the held-for- collection and selling debt portfolio for Steffi Graf SA is as follows. Security A B C Total Amortized Cost Fair Value €17,500 €15,000 12,500 14,000 23,000 25,500 €53,000 €54,500 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) (€2,500) 1,500 2,500 1,500 400 €1,100 On January 20, 2023, Steffi Graf SA sold security A for €15,100. Instructions a. Prepare the adjusting entry at December 31, 2022, to report the portfolio at fair value. b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2022. (Ignore notes presentation.) c. Prepare the journal entry for the 2023 sale of security A.
Chapter1: Financial Statements And Business Decisions
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