Presented below is information relating to the purchase of common stock by Jamison Company December 31, 2016.

Cost Fair Value

Investment in Readfield Company common stock $125,000 $115,500

Investment in Lee Company common stock $100,000 $ 80,000

Investment in Stern Company common stock $250,000 $300,000

Investment in Jones Company common stock $180,000 $190,000

$655,000 $685,500

These investments are classified as trading security by Jamison who uses portfolio approach to account for those investments.

During the year 2017, Lee Companys stock was sold for $102,000. Jamison purchased common stock of Earnhart Company at a cost of $163,000.

At the end of December 2017, the fair values of the trading securities are as follows:

Readfields common stock- $111,800, Sterns common stock- $310,000, Jones common stock- $171600, and Earnharts common stock- $159,250.

1. Make the adjustment entry for the portfolio at December 31, 2016 to report the fair value of investment in the balance sheet and prepare journal entry to record the sale of Lee Companys stock in Jamisons book in 2017.