The generally accepted answer for the attached problem was placed in the spreadsheet as journal entries however when I try to put this into Cengage site (the test engine for our assignments for this course) it rejects portions of it it. It flags many of the entries as incorrect. The problem requires 12 journal entries.

Instructions At the beginning of 2018, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value) Security Cost $45,000 A 1/1/18 Fair Value $56,000 65,000 B 68,000 Totals $113,000 $121,000 During 2018, the following transactions occurred: May 3 July 1 Purchased C debt securities at their par value for $50,000. Sold all of the A securities for S56,000 plus interest of S1,000. Received interest of $1,000 on the B and C securities. Additionally the following information was available: Dec. 31 Security 12/31/18 Fair Value B $75,000 53,000 Required: 1. Prepare journal entries to record the preceding information ournal Entries Date 1 May 3 2 3 Jul 1 4 Credit to record purchase of stock C 50,000 to record sale of stock A 4 5 5 6 Account Debit Investment in Available-for-Sale Securities 50,000 Cash Cash 57,000 Unrealized Holding Gain/Loss: Available for Sale Securities 11,000 Investment in Available-for-Sale Securities Interest Income Gain on Sale of Available for Sale Securities Cash 1,000 Interest Income Investment in Available-for-Sale Securities 10,000 Investment in Available-for-Sale Securities 3,000 Unrealized Holding Gain/Loss: Available-for-Sale Securities 56,000 1,000 11,000 7 8 Dec 31 to record interest received from stocks B and 1,000 9 10 Dec 31 to record the unrealized gain of stocks B and C 11 12 13,000 Beginning Balance of Unrealized Gain /(Loss) of Security B (3,000)