In January $2022,$ the management of Pharoah Company concludes that it has sufficient cash to purchase some short$-$term investments in debt and stock securities$.$ During the year, the following transactions occurred.

Jan.

Feb.

Mar.

July

Aug.

Sept.

$1$

$1$

$1$

$1$

Dec. $31$

$31$

Purchased $74$ $$1,000,7\%$ TRC bonds for $$74,000.$ Interest is payable annually on December $31.$

Purchased $1\mathrm{.}150$ shares of LAF common stock for $$52\mathrm{.}900.$

Purchased $520$ shares of NCL common stock for $$17\mathrm{.}680.$

Received a cash dividend of $$0\mathrm{.}90$ per share on the LAF common stock.

Sold $200$ shares of LAF common stock at $$45$ per share.

Received $$2$ per share cash dividend on the NCL common stock.

Received the annual interest on the TRC bonds.

Sold the TRC bonds for $$74,998.$

At December $31,$ the fair values of the LAF and NCL common stocks were $$42$ and $$27$ per share, respectively. These stock investments by Pharoah Company provide less than a $20\%$ ownership interest.

Feb. $1$

Mar. $1$

Dec. $31$ Bal. $$

$52900$

Aug. $1$

$17680$

$61380$

Debt Investments

$74000$

Dec. $31$

$9200$

Jan. $1$

Dec. $31$ Bal. O

$74000$

eTextbook and Media

Assistance Used

List of Accounts

Attempts: $3$ of $5$ used

$($b$)$

Prepare the adjusting entry at December $31,2022,$ to report the investments at fair value. $($Credit account titles are automatically indented when the 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.$)$

Debit

Date Account Titles and Explanation

Dec.

$31$