During 2021, Largent Enterprises purchased bonds as follows:

May 17, Purchased 100 Nugent bonds for $800 per bond

July 12, Purchased 40 Alfredo bonds at $600 per bond, plus a $600 brokerage commission

Largent accounts for these investments as securities available-for-sale. At December 31, 2021, the market values of the securities were as follows:

Security: Nugent had a market value per bond of $720

Security: Alfredo had a market value per bond of $640

Required:

1. ) Prepare the journal entries to record the acquisition of the two investments.
2. Prepare any necessary adjusting entries assuming the bonds are both classified as available-for-sale securities.