At December 31 of last year, the portfolio of investments in equity securities measured at FV-NI held by Athletes Inc. was as follows. Fair Unrealized Holding Investment Security Shares Cost Value Gain (Loss) Badger Common Stock 2.500 $100,000 $98,750 $-1,250 Spartan Common Stock 4.000 125.000 127,500 2.500 Wildcat Common Stock 1.250 62.500 58,750 -3,750 Total S287,500 $285,000 $-2,500 The following transactions took place in the current year. On June 1, Athletes Inc. sold 1,000 shares of Spartan stock for 533 per share and 250 shares of Wildcat stock for $55 per share. Athletes Inc. purchased 1,000 shares of Gopher common stock for $35 per share on August 1. The fair value of the remaining stock held on December 31 is as follows: Badger common stock, $105,000; Spartan common stock, $90,000; Wildcat common stock, $52,000; and Gopher common stock, $36,000. a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1. Prior to recording the sale, update the investments to fair value. Eliminate the associated Fair Value Adjustment balances upon sale of the investments. Combine the amounts for both investments into one entry b. Record the purchase of Gopher common stock on August 1. c. Prepare any adjusting entry needed on December 31. Account Name Debit Date (11) June 1 Credit 0 0 OX OX To adjust investments being sold to fair value (2) June 1 0 OX OX OX . 0 To record the sale of investments (b) Aug. 1 0 0 X OX . 0 To record the ourchase of investments, (c) Dec. 31 0 0 X . . 0 OX To record year end adjusting entry