General Corporation has the following investments in equity securities at December 31, 2011 (there are no existing balances in the market adjustment account):

Required:
1. Prepare any adjusting entries required at December 31, 2011.
2. Illustrate how these investments would be presented on General's balance sheet at December 31, 2011. The available-for-sale securities are expected to be held for two to five years.
3. Prepare the journal entry on April 10, 2012, when General sold the Clarke investment for $72 per share.
4. Assume that General still owns its investment in Marlin and Air Products at December 31, 2012; the market prices on that date are $37 for Marlin and $44 for Air Products.
Prepare all adjusting journal entries needed at December 31,2012.

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Percentage of Shares Market Price at 12/31/2011 Classification Trading Available-for-sale Available-for-sale Company Clarke Corporation Marlin Company Shares Owned Cost 2% $75 34 46 $78 32 43 1,000 4,000 15 Air Products, Inc. 3,000