new answer please

P16.5 (LO 2, 3), AP Here is Frederick Companys portfolio of long-term stock investments on December 31, 2021, the end of its first year of operations.

Cost

1,000 shares of Willhite Corporation common stock $52,000

1,400 shares of Hutcherson Corporation common stock 84,000

1,200 shares of Downing Corporation preferred stock 33,600

On December 31, the total cost of the portfolio equaled the total fair value. Frederick had the following transactions related to the securities during 2022.

Jan. 20 Sold all 1,000 shares of Willhite Corporation common stock at $55 per share.

28 Purchased 400 shares of $10 par value common stock of Liggett Corporation at $78 per share.

30 Received a cash dividend of $1.15 per share on Hutcherson Corp. common stock.

Feb. 8 Received cash dividends of $0.40 per share on Downing Corp. preferred stock.

18 Sold all 1,200 shares of Downing Corp. preferred stock at $27 per share.

July 30 Received a cash dividend of $1.00 per share on Hutcherson Corp. common stock.

Sept. 6 Purchased an additional 900 shares of $10 par value common stock of Liggett Corporation at $82 per share.

Dec. 1 Received a cash dividend of $1.50 per share on Liggett Corporations common stock.

On December 31, 2022, the fair values of the securities were:

Hutcherson Corporation common stock $64 per share

Liggett Corporation common stock $72 per share

Instructions

Prepare journal entries to record the transactions.

a. Loss on sale of stock investment $1,200

Post to the investment account. (Use a T-account.)

Prepare the adjusting entry on December 31, 2022, to report the portfolio at fair value.

c. Unrealized gain or lossincome of $5,800

Show the balance sheet presentation on December 31, 2022, for the investment-related accounts.

Prepare a balance sheet.