Kate Limited has asked you to prepare appropriate journal entries for the following unrelated situations. There is no income tax.

Case A An investment with an original cost of \(\$ 400,000\) was accounted for using the cost method in 20X0, 20X1, and 20X2. This year, 20X3, the company must conform to new accounting standards and report the investment at fair value. Fair values were \(\$ 390,000\), \(\$ 410,000\), and \(\$ 450,000\) at the end of \(20 \mathrm{X} 0,20 \mathrm{X} 1\), and \(20 \mathrm{X} 2\), respectively. The investment had a fair value of \(\$ 466,000\) at the end of \(20 X 3\). The change is to be accounted for retrospectively with restatement of the prior year's statements. The company wishes to record the change in \(20 \times 3\), and to adjust the investment account to fair value at the end of 20X3. Note: The change affects the shareholders' equity account, unrealized holding gains (a separate component of other comprehensive income), instead of retained earnings.

Case B The company has always recognized revenue on delivery but, because of a change in reporting objectives, will now recognize revenue according to the industry norm, which is on cash collection. Opening and closing accounts receivable are \(\$ 1,600,000\) and \(\$ 2,355,000\), respectively. The gross profit margin is \(60 \%\). Required:

Prepare appropriate journal entries for these two situations. Ignore income tax considerations.