Problem - At December 31, 2017, the available-for-sale debt portfolio for Metlock, Inc. is as follows.
|
Security
|
Cost
|
Fair Value
|
Unrealized
Gain (Loss)
|
|
A
|
$30,625
|
$26,250
|
$(4,375)
|
|
|
B
|
21,875
|
24,500
|
2,625
|
|
|
C
|
40,250
|
44,625
|
4,375
|
|
|
Total
|
$92,750
|
$95,375
|
2,625
|
|
|
Previous fair value adjustment balance-Dr.
|
700
|
|
|
Fair value adjustment-Dr.
|
$1,925
|
|
On January 20, 2018, Metlock, Inc. sold security A for $26,425. The sale proceeds are net of brokerage fees.
Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value.
Show the balance sheet presentation of the investment-related accounts at December 31, 2017.