1. The Janjua Company had the following account balances at 1/1/18:

Common Stock.............................................. $70,000

Treasury Stock (at cost)................................. $18,000

Paid-in-Capital in Excess of Par..................... $45,000

Investments in Trading Equity Securities....... $38,000

FVA (Trading)................................................. $2,000 credit

Retained Earnings..........................................$22,000

There were no sales or purchases of Common Stock or Investments during 2018. Prior to any adjusting journal entries related to the Investments, 2018 Net Income was $12,100. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/18 was $35,000.

Required:

1. (a) Prepare the 12/31/18 journal entry to adjust the investment to fair value.
2. (b) Prepare the complete 12/31/18 Equity section of the balance sheet.