Problem -
At December 31, 2017, the available-for-sale debt portfolio for Stellar, Inc. is as follows.
Security Cost Fair Value Unrealized Gain (Loss)
A $25,375 $21,750 $(3,625)
B 18,125 20,300 2,175
C 33,350 36,975 3,625
Tota $76,850 $79,025 2,175
Previous fair value adjustment balance-Dr.580
Fair value adjustment-Dr.$1,595
On January 20, 2018, Stellar, Inc. sold security A for $21,895. The sale proceeds are net of brokerage fees.
Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.