1.

The balance in the Unrealized Gain or LossEquity account will

appear on the balance sheet as a contra asset.

appear as a deduction in the stockholders equity section.

appear on the income statement under Other Expenses and Losses.

not be shown on the financial statements until the securities are sold.

2. enek Corporation had the following transactions pertaining to debt investments.	Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
1.		Purchased 41 9%, $1,800 Leeds Co. bonds for $73,800 cash on January 1, 2017. Interest is payable annually on January 1.
2.		Accrued interest on Leeds Co. bonds on December 31, 2017.
3.		Received interest on Leeds Co. bonds on January 1, 2018.
4.		Sold 25 Leeds Co. bonds for $48,708 on January 1, 2018.
Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2018
Jan. 1, 2017Dec. 31, 2017Jan. 1, 2018
Jan. 1, 2018Jan. 1, 2017Dec. 31, 2017
	(To record interest received)
Dec. 31, 2017Jan. 1, 2018Jan. 1, 2017
	(To record sale of bonds)