On January 1, 2016, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 2016, the cost of the available-for-sale securities was $72,700, and the fair value was $66,290.

Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31, 2016. Refer to the Chart of Accounts for exact wording of account titles. Be sure to enter the year as part of the date.

CHART OF ACCOUNTSGeneral Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
161	Trading Investments
162	Available-for-Sale Investments
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain (Loss) on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

EXPENSES

511

Cost of Merchandise Sold

512

Bad Debt Expense

516

Cash Short and Over

520

Salaries Expense

531

Advertising Expense

534

Selling Expenses

535

Rent Expense

537

Office Supplies Expense

562

Depreciation Expense-Office Equipment

590

Miscellaneous Expense

710

Interest Expense

731

Loss on Sale of Investments

741

Unrealized Loss on Trading Investments

Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31, 2016. Refer to the Chart of Accounts for exact wording of account titles. Be sure to enter the year as part of the date.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3