Ayayai Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,900 shares of Anderson Co. common stock which cost $52,200, (2) 9,600 shares of Munter Ltd. common stock which cost $547,200, and (3) 6,200 shares of King Company preferred stock which cost $260,400. The Fair Value Adjustment account shows a credit of $10,700 at the end of 2020. In 2021, Ayayai completed the following securities transactions.

1.		On January 15, sold 2,900 shares of Andersons common stock at $21 per share less fees of $2,020.
2.		On April 17, purchased 1,100 shares of Castles common stock at $33 per share plus fees of $1,860.

On December 31, 2021, the market prices per share of these securities were Munter $61, King $40, and Castle $22. In addition, the accounting supervisor of Ayayai told you that, even though all these securities have readily determinable fair values, Ayayai will not actively trade these securities because the top management intends to hold them for more than one year.

(a)

Prepare the entry for the security sale on January 15, 2021.

b) Prepare the journal entry to record the security purchase on April 17, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(c) Compute the unrealized gains or losses.

Prepare the adjusting entry for Parnevik on December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)