. The Janjua Company had the following account balances at 1/1/16:

Common Stock $50,000

Treasury Stock (at cost) 12,000

Paid-in-Capital in Excess of Par 200,000

Investments in AFS Equity Securities 37,000

FVA (AFS) 2,500 credit

Retained Earnings 35,000

On that date, the Accumulated OCI account was at its proper balance. There were no sales or purchases of Common Stock or Investments during 2016. Prior to any adjusting journal entries related to the investments, 2016 Net Income was $7,800. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/2016 was $34,700.

Required:

(a) Prepare the 12/31/16 journal entry to adjust the investment to fair value.

(b) Prepare the complete 12/31/16 Equity section of the balance sheet.