Problem - At December 31, 2010, the available for sale equity portfolio for Wenger, Inc. is as follows:

Security                Cost                       Fair Value            Unrealized Gain (Loss)

A                             17,500                   15,000                   (2,500)

B                             12,500                   14,000                   1,500

C                             23,000                   25,500                   2,500

                                53,000                   54,500                   1,500

Previous securities fair value adjustment balance Dr.  200

Securities fair value adjustment Dr. 1,300

On January 20, 2011, Wegner, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees.

(a) Prepare the adjusting entry at December 31, 2010, to report the portfolio at fair value.

(b) Show the balance sheet presentation of the investment related accounts at December 31, 2010. (ignore notes presentation).

(c) Prepare the journal entry for the 2011 sale of security A.