On December 31, 2018, InterSteel Inc. provided you with the following information regarding its investments in equity securities. InterSteel purchased all of these securities during 2018, and InterSteel accounts for all of them using the fair value method.

Investments in Equity Securities Cost Fair Value

JAK inc. Stock 40,000 46,000

Kibby Co. 101,000 99,500

Lorton Corp Stock 31,000 34,500

..............

Total of Portfolio 172,000 180,000

On July 1, 2019, InterSteel sold its Lorton Corp. stock for $33,200. As of December 31, 2019, the fair value of the remaining stock was: JAK Inc. stock$47,600; Kibby Co. stock$95,400.

a. Prepare the adjusting journal entry that InterSteel needs to make on December 31, 2018.

b. Prepare the journal entry that InterSteel needs to make to record the sale of the Lorton Corp. stock

c. Prepare the adjusting journal entry that InterSteel needs to make on December 31, 2019