Ben Inc. has the following securities in its investment portfolio on December 31, 2020.

All securities were purchased in 2020.

Ben does not have significant influence over any of these companies.

Ben plans to hold them for more than a year at least.

Company 1: Andy

Shares: 5000

Cost: $81,950

Company 2: Don

Shares: 3000

Cost: 152,780

Company 3: Citi

Shares: 12000

Cost: 560000

Fair Value Adjustment balance at end of 2020 has a debit of $8,300

The following transactions were completed in 2021:

• On March 15, sold 5000 shares of Andy for $18 per share less fees of $ 3,500
• On June 6, purchased 9000 shares of Zeke common stock at $ 21.70 per share plus fees of $ 2800

Market Values per share as of December 31, 2021 were as follows:

Company 1: Don

Cost Per Share: $62.50

Company 2: Citi

Cost Per Share: $46

Company 3: Zeke

Cost Per Share:

Instructions:

1. Prepare the journal entry for the sale of Andy
2. Prepare the journal entry for the purchase of Zeke
3. Compute the unrealized gains and losses and the adjusting entry on December 31, 2021.

Please show work.