Prepare the adjusting entry at december

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Question: At December 31, 2017, the available-for-sale debt portfolio for Carla, Inc. is as follows.

      Security Cost        Fair Value         Unrealized Gain (Loss)

A         $35,875            $30,750                 $(5,125)

B           25,625             28,700                    3,075

C           47,150             52,275                    5,125

Total   $108,650          $111,725                   3,075

Previous fair value adjustment balance Dr. 820

Fair value adjustment Dr. $2,255

On January 20, 2018, Carla, Inc. sold security A for $30,955. The sale proceeds are net of brokerage fees. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.

Reference no: EM131755997

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