Novak Corporation made the following cash purchases of securities during 2020, which is the first year in which Novak invested in securities.

1.		On January 15, purchased 9,800 shares of Sanchez Companys common stock at $33.50 per share plus commission $1,944.
2.		On April 1, purchased 4,900 shares of Vicario Co.s common stock at $52 per share plus commission $3,299.
3.		On September 10, purchased 6,860 shares of WTA Co.s preferred stock at $26.50 per share plus commission $4,810.

On May 20, 2020, Novak sold 3,724 shares of Sanchez Companys common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3,773. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Novak 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.

(a)

Prepare the journal entries to record the above three security purchases. (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.)

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	Jan.15, 2020	Equity investments	330,244
		Cash		330,244
(2)	Apr. 1, 2020	Equity investments	258,099
		Cash		258,099
(3)	Sep. 10, 2020	Equity investments	186,600
		Cash		186,600

(b)

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, 2020	Cash	126,567
	Equity investments		125,493
	Gain on sale of investments		1,074

(c)

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

Unrealized Gains/Losses

$

Prepare the adjusting entries for Novak on December 31, 2020. (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, 2020

Please state where the fair value amounts are coming from once you get them, for me to better undertsand.