On April 30, 2016, Aggie Corporation purchased available-for-sale securities. These securities consisted of (a) Smith Corporation 10%, 5-year bonds with a face value of $12,000 which were purchased at par plus four months of accrued interest and (b) 300 shares of Bike Company common stock which were purchased at $20 per share. On December 31, 2016, the value of the Bike stock was $5,500 and Aggie correctly posted the entries to recognize that market value. Assume that on February 1, 2017, Aggie sold its investment in Bike Company stock for $6,400.

Required:

Prepare the journal entries of Aggie Corporation to record the sale and adjustment of the unrealized gain or loss.