Metlock Corporation made the following cash purchases of securities during 2017, which is the first year in which Metlock invested in securities. 1. On January 15, purchased 10,150 shares of Sanchez Companys common stock at $46.90 per share plus commission $2,130. 2. On April 1, purchased 5,150 shares of Vicario Co.s common stock at $72.80 per share plus commission $3,520. 3. On September 10, purchased 7,150 shares of WTA Co.s preferred stock at $37.10 per share plus commission $5,060. On May 20, 2017, Metlock sold 4,150 shares of Sanchez Companys common stock at a market price of $49 per share less brokerage commissions, taxes, and fees of $4,000. The year-end fair values per share were Sanchez $42, Vicario $77, and WTA $39.20. In addition, the chief accountant of Metlock told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.

Prepare the journal entry for the security sale on May 20. (Round answers to 0 decimal places, e.g. 2,500. 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.)

Date	Account Titles and Explanation	Debit	Credit
May 20, 2017

Compute the unrealized gains or losses. (Round answer to 0 decimal places, e.g. 2,500.)

Unrealized losses = ?

Prepare the adjusting entries for Metlock on December 31, 2017. (Round answers to 0 decimal places, e.g. 2,500. 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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2017