Acc423 Intermediate Accounting: P17-9 the available-for-sale equity portfolio for Steffi Graf Inc

Acc423 Intermediate Accounting                              
P17-9 (Available-for-Sale Securities Entries and Financial Statement Presentation)                                    
At December 31, 2006, the available-for-sale equity portfolio for Steffi Graf, Inc. is as follows.
Security           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 securities fair value adjustment  balance—Dr.                           400
Securities fair value adjustment—Dr.                         1,100
On January 20, 2007, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees.
 
Instructions
(a)  Prepare the adjusting entry at December 31, 2006 to report the portfolio at FMV.
(b) Show the balance sheet presentation of the investment related accounts at December 31, 2006. (Ignore notes presentation.)
(c) Prepare the journal entry for the 2007 sale of security A.
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