Problem - At December 31, 2017, the available-for-sale debt portfolio for Marin, Inc. is as follows.
|
Security
|
Cost
|
Fair Value
|
Unrealized
Gain (Loss)
|
|
A
|
$32,375
|
$27,750
|
$(4,625)
|
|
B
|
23,125
|
25,900
|
2,775
|
|
C
|
42,550
|
47,175
|
4,625
|
|
Total
|
$98,050
|
$100,825
|
2,775
|
|
Previous fair value adjustment balance-Dr.
|
740
|
|
Fair value adjustment-Dr.
|
$2,035
|
On January 20, 2018, Marin, Inc. sold security A for $27,935. The sale proceeds are net of brokerage fees.
Required -
a) Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.
b) Show the balance sheet presentation of the investment-related accounts at December 31, 2017.