Pharoah Corporation made the following cash purchases of securities during 2017, which is the first year in which Pharoah invested in securities.

1. On January 15, purchased 10,040 shares of Sanchez Companys common stock at $36.90 per share plus commission $2,020.

2. On April 1, purchased 5,040 shares of Vicario Co.s common stock at $57.20 per share plus commission $3,410.

3. On September 10, purchased 7,040 shares of WTA Co.s preferred stock at $29.20 per share plus commission $4,950.

On May 20, 2017, Pharoah sold 4,040 shares of Sanchez Companys common stock at a market price of $39 per share less brokerage commissions, taxes, and fees of $3,890. The year-end fair values per share were Sanchez $33, Vicario $61, and WTA $30.80. In addition, the chief accountant of Pharoah told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.

101 MURES Date Account Titles and Explanation Debit No. (1) Credit (3) Prepare the journal entry for the security sale on May 20, (Round answers to O decimal places, .9. 2,500. Credit account titles are automatically inden entry is required, select "No Entry" for the account titles and enter for the amounts.) Credit Date Account Titles and Explanation May 20, 2017 Compute the unrealized gains or losses. (Round answer to O decimal places, eg. 2,500) Unrealized Prepare the adjusting entries for Pharoah on December 31, 2017. (Round answers to decimal places,.. 2,500. Credit account titles are automatically in If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec 31, 2017