E17.6 (LO1) (HFCS Debt Securities Entries and Financial Statement Presentation) At December 31, 2019, the held-for-collection and selling debt portfolio for Steffi Graf SA is as follows. Security Amortized Cost Fair Value Unrealized Gain (Loss) A €17,500 €15,000 (€2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total €53,000 €54,500 1,500 Previous fair value adjustment balance-Dr. 400 Fair value adjustment-Dr. €1,100 On January 20, 2020, Steffi Graf SA sold security A for €15,100. The sale proceeds are net of brokerage fees. Instructions a. Prepare the adjusting entry at December 31, 2019, to report the portfolio at fair value. b. Show the statement of financial position presentation of the investment-related accounts at December 31, 2019. (Ignore notes presentation.) c. Prepare the journal entry for the 2020 sale of security A.
E17.6 (LO1) (HFCS Debt Securities Entries and Financial Statement Presentation) At December 31, 2019, the held-for-collection and selling debt portfolio for Steffi Graf SA is as follows.
Security Amortized Cost Fair Value Unrealized Gain (Loss)
A €17,500 €15,000 (€2,500)
B 12,500 14,000 1,500
C 23,000 25,500 2,500
Total €53,000 €54,500 1,500
Previous fair value adjustment balance-Dr. 400
Fair value adjustment-Dr. €1,100 On January 20, 2020, Steffi Graf SA sold security A for €15,100. The sale proceeds are net of brokerage fees.
Instructions
a. Prepare the
b. Show the
c. Prepare the
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