SECTION IV 30 Points On December 31, 2018, Martha Stewart Enterprises had the following information regarding its investments in common stock: Balances December 31, 2018 Stock Boeing JP Morgan Imclone Total Cost $15,000 25.000 10.000 $50,000 Fair Value $12,000 27,000 6.000 $45.000 Unrealized Gain or loss $(3.000) 2,000 (4.000 $(5,000 On July 27, 2019, Martha Stewart sold the imclone stock for $2.000 less broker's fees of $50. The fair value of the remaining stocks on December 31, 2019, were Boeing $13,000 and JP Morgan $24,000. Instructions: 1. Prepare the adjusting Journal Entry on December 31, 2018 to record any unrealized gain or loss on stock. 2. Record the entry for July 27, 2019 for the sale of the Imclone Stock. 3. Record the adjusting journal entry on December 31, 2019 necessary to reflect the current values of Martha Stewart's investments in stock. Martha Stewart has the following general ledger accounts: Cash Accounts Receivable Investments in Stock Fair Value Adjustment Inventory Land Buildings Equipment Accumulated Depreciation Accounts Payable Wages Payable Interest Payable Common Stock Retained Earnings Dividends Treasury Stock Sales Loss on Investments Gain on Investments Cost of Goods Sold Unrealized holding gain or loss -Income Sales Discounts Depreciation Expense Wages Expense BUS 2UU-TUULI Section IV General Journal Date Account Titles and Explanation Debit Credit For Instruction #3 Investment Balances as of December 31, 2019 Fair Value Adjustment Account Analysis Stock Boeing JP Morgan Unrealized Gain or loss Cost $15,000 $25.000 Fair Value $13,000 $24.000 Total Balance 12/31/18 Required Adjustment $37.000