At December 31, 2020, the available-for-sale debt portfolio for Cheyenne, Inc. is as follows. ...
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Accounting
At December 31, 2020, the available-for-sale debt portfolio for Cheyenne, Inc. is as follows.
Security
Cost
Fair Value
UnrealizedGain (Loss)
A
$31,500
$27,000
$(4,500
)
B
22,500
25,200
2,700
C
41,400
45,900
4,500
Total
$95,400
$98,100
2,700
Previous fair value adjustment balanceDr.
720
Fair value adjustmentDr.
$1,980
On January 20, 2021, Cheyenne, Inc. sold security A for $27,180. The sale proceeds are net of brokerage fees.
Part 1
Part 2
Show the balance sheet presentation of the investment-related accounts at December 31, 2020. (Do not leave any answer field blank. Enter 0 for amounts.)
CHEYENNE, INC Balance Sheet
$
AddLess:
$
Part 3
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
Answer & Explanation
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