On December 31, 2019, Blue Spruce Corp. provided you with the following pre-adjustment information regarding its portfolio of investments held for short-term profit-taking:

December 31, 2019 Investments Carrying Amount Fair Value

Moonstar $22,000 $20,700

Corp.shares Bilby Corp. shares 11,000 9,800 Radius Ltd. shares 21,800 22,500 Total portfolio $54,800 $53,000

During 2020, the Bilby Corp. shares were sold for $10,500. The fair values of the securities on December 31, 2020, were as follows: Moonstar Corp. shares $21,600 and Radius Ltd. shares $22,400. Dividends and other investment income and losses are all reported in one investment income account.

a) Prepare the adjusting journal entry needed on December 31, 2019. b) Prepare the journal entry to record the sale of the Bilby Corp. shares during 2020. c) Prepare the adjusting journal entry needed on December 31, 2020.

On December 31, 2019, Blue Spruce Corp. provided you with the following pre- adjustment information regarding its portfolio of investments held for short-term profit- taking: Investments Moonstar Corp. shares Bilby Corp. shares Radius Ltd. shares Total portfolio December 31, 2019 Carrying Amount $22,000 11,000 21,800 $54,800 Fair Value $20,700 9.800 22.500 $53,000