Question - At December 31, 2014, the available for sale equity portfolio for xyz corp. is as follows.
Security Cost Fair Value
Stock A 33,600 31,000
Stock B 175,000 174,000
Stock C 59,400 68,500
Total 268,000 273,500
December 31, 2013, securities fair value adjustment balance- Dr. 5,400
On January 20, 2015, xyz sold stock A for 31,100. The sale proceeds are net brokerage fees.
(a) Prepare the adjusting entry at December 31, 2014 to report the portfolio at fair value.
(b) Prepare the journal entry for the 2015 sale of stock A.