Acc423 Intermediate Accounting: E17-9 At December 31, 2012, the available-for-sale equity portfolio
Acc423 Intermediate Accounting
E17-9 Available-for-Sale Securities Entries and Financial Statement Presentation At December 31, 2012, the available-for-sale equity portfolio for Wenger, 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 53,000 54,500 1,500 Previous fair value adjustment balance - Dr. 200 Fair value adjustment - Dr. 1,300
On January 20, 2013, Wenger, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees.
Instructions: (a) Prepare the adjusting entry at December 31, 2012, to report the portfolio at fair value. (b) Show the balance sheet presentation of the investment related accounts at December 31, 2012. (Ignore note presentation) (c ) Prepare the journal entry for the 2013 sale of security A.