Microsoft?s 2017 10-K includes the following information in Note 19?Accumulated Other Comprehensive Income relevant to its available-for-sale investments:

Required:1. Prepare a journal entry to record unrealized gains for 2017.

2. Prepare a journal entry to record Microsoft?s reclassification adjustment for 2017 (pretax).

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Year Ended June 30, ($ in millions) 2016 2015 2017 Investments Accumulated other comprehensive income balance, beginning of period Unrealized gains, net of tax effects of $267, $120 and $59 Reclassification adjustments for gains included in other income (expense), net Tax expense included in provision for income taxes $2,941 517 $3,169 $3,531 219 110 (2,513) (688) (728) 880 241 256 Amounts reclassified from accumulated other comprehensive income (1,633) (447) (472) Net current period other comprehensive income (loss) (1,116) (228) (362) Accumulated other comprehensive income balance, end of period $1,825 $2,941 $3,169