On December $31,2021,$ the end of its first year of operations, Pharah Associates owned the following securities that are held as long$-$term investments.

Common Stock

C Co$.$

D Co$.$

E Co$.$

Shares

$940$

$4\mathrm{.}640$

$1,169$

Cost

$$48,880$

$36\mathrm{.}656$

$23,380$

On this date. the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In $2022,$ the following transactions occurred.

July

Aug.

Sept.

Oct.

Nov.

$1$

$1$

$1$

Dec. $15$

$31$

Received $$2\mathrm{.}00$ per share semiannual cash dividend on D Co$.$ common stock.

Received $$0\mathrm{.}50$ per share cash dividend on C Co$.$ common stock.

Sold $1,020$ shares of D Co$.$ common stock for cash at $$9$ per share.

Sold $274$ shares of C Co$.$ common stock for cash at $$54$ per share.

Received $$1$ per share cash dividend on E Co$.$ common stock.

Received $$0\mathrm{.}50$ per share cash dividend on C Co$.$ common stock.

Received $$2\mathrm{.}30$ per share semiannual cash dividend on D Co$.$ common stock.

At December $31,$ the fair values per share of the common stocks were C Co$.$ $$51,$ D Co$.$ $$7\mathrm{.}70,$ and E Co$.$ $$24.$

These investments should be classified as long$-$term.

SUPPORT

$($b$)$

Prepare the adjusting entry at December $31,2022,$ to show the securities at fair value. Pharoah has less than a $20\%$ ownership interest in all these common stocks $($C Co$.,$ D Co$.,$ and E Co$.).($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.$)$

Date

Account Titles and Explanation

Dec.

$31$

Debit