At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt securities (all of which were acquired at par value):

Company	Amortized Cost	12/31/18 Fair Value	Cumulative Change in Fair Value
Morgan Company	$35,000	$34,200	$(800)
Nance Company	60,000	63,200	3,200
Totals	$95,000	$97,400	$2,400

During 2019, the following transactions occurred:

July 1	Purchased Oscar Company debt securities with a par value of 100,000 for $97,000. The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31. Terry uses the straight-line method to amortize any discounts or premiums.
Oct. 11	Sold all of the Morgan Company securities for $33,000 plus interest of $1,400.
Dec. 31	Received interest of $6,000 on the Nance Company and Oscar Company debt securities, and the following yearend total market values were available: Nance Company debt securities, $64,000; Oscar Company debt securities, $95,200.

Required:

1.	Prepare journal entries to record the preceding information.
2.	Show how the preceding items are reported on Terrys December 31, 2019, balance sheet. Assume all investments are non-current.

General Journal POST. REF. DEBIT CREDIT DATE ACCOUNT TITLE Jul. 1 Investment in Available-for-Sale Securities 97,000.00 Cash 97,000.00 43 Oct. 11 Cash 34,400.00 2,000.00 Loss on Sale of Available-for-Sale Securities Investment in Available-for-Sale Securities 35,000.00 Interest Income 1,400.00 800.00 Oct. 11 Allowance for Change in Fair Value of Investment Unrealized Holding Gain/Loss: Available-for-Sale Securities 800.00 Dec. 31 Cash 6,000.00 Investment in Available-for-Sale Securities 400.00 Interest Income 6,400.00 400.00 Dec. 31 Unrealized Holding Gain/Loss: Available-for-Sale Securities Allowance for Change in Fair Value of Investment 400.00 Score: 18/34 Terry Company Partial Balance Sheet December 31, 2019 Noncurrent Assets: Investment in Available-for-Sale Securities 3 Plus: Allowance for Change in Fair Value of Investment Shareholders' Equity: Unrealized Holding Gain/Loss: Available-for-Sale Securities