Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value.

accounting   No hand written solution please

At December 31, 2020, the available-for-sale debt portfolio for Kingbird, Inc. is as follows. Security   Cost   Fair Value   UnrealizedGain (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

Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in available-for-sale debt securities: Security Par Value Amortized Cost 12/31/18 Fair Value Igor Company 5% bonds, maturing on Dec. 31, 2028 $10,000 $8,400 $9,400 Ozone Company 6% bonds, maturing on Dec. 31, 2023 $20,000 23,100 21,700 Totals   $31,500 $31,100   During 2019, the following transactions occurred: Mar. 31 Purchased Union Company 8% bonds with a face value of $10,000 for $10,000 plus accrued interest; interest is payable on the bonds each June 30 and December 31. Mar. 31 Sold the Ozone Company investment for $22,000 plus accrued interest. June 30 Received the semiannual interest on the Union Company bonds. Dec. 31 Received the annual interest on the Igor Company bonds and the semiannual interest on the Union Company bonds.   The December 31 closing market prices were as follows: Igor Company bonds,…