On September 1, 1999, Ramsey Company purchased the following relatively long-term investments classified as available-for-sale securities:

1. Two thousand shares of Lacey Company capital stock at \(\$ 439.20\) plus broker's commission of \(\$ 5,760\).

2. One thousand shares of Membrow Company capital stock at \(\$ 705.60\) plus broker's commission of \(\$ 5,040\).

Cash dividends of \(\$ 18.00\) per share on the Lacey capital stock and \(\$ 14.40\) per share on the Membrow capital stock were received on December 7 and December 10, respectively.

On December 31, 1999, per share market values are Lacey, \(\$ 460.80\); and Membrow, \(\$ 655.20\).

Required

a. Prepare journal entries to record these transactions.

b. Prepare the necessary adjusting entry(ies) at December 31, 1999, to adjust the carrying values assuming that market price changes are believed to be temporary. Where would the accounts appear in the financial statements?