7.

Prepare the journal entries for the following transactions for Morgan Co.

July	1	Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of Gordon Corp. stock for $10 per share plus a $400 commission.
Dec.	31	Gordon Corp.'s total earnings for the period are $80,000.
	31	Gordon Corp. paid a total of $45,000 in cash dividends.

July 1		fill in the blank 2
			fill in the blank 4
Dec. 31		fill in the blank 6
			fill in the blank 8
Dec. 31		fill in the blank 10
			fill in the blank 12

8.

On January 1, the valuation allowance for available-for-sale investments account had a zero balance. On December 31, the cost of the available-for-sale securities was $48,700, and the fair value was $39,200.

Prepare the adjusting entry to record the unrealized gain or loss for available-for-sale investments on December 31.

Dec. 31		fill in the blank 2
			fill in the blank 4