Current Attempt in Progress

In January $2022,$ the management of Pharoah Company concludes that it has sufficient cash to purchase some short$-$term

investments in debt and stock securities$.$ During the year, the following transactions occurred.

Jan. $1$ Purchased $74$$$1,000,7\%$ TRC bonds for $$74,000.$ Interest is payable annually on December $31.$

Feb. $1$ Purchased $1,150$ shares of LAF common stock for $$52,900.$

Mar. $1$ Purchased $520$ shares of $NCL$ common stock for $$17,680.$

July $1$ Received a cash dividend of $$0\mathrm{.}90$ per share on the LAF common stock.

Aug. $1$ Sold $200$ shares of LAF common stock at $$45$ per share.

Sept. $1$ Received $$2$ per share cash dividend on the NCL common stock.

Dec. $31$ Received the annual interest on the TRC bonds.

$31$ Sold the TRC bonds for $$74,998.$

$($b$)$

Your answer is incorrect.

Prepare the adjusting entry at December $31,2022,$ to report the investments at fair value. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$

Unrealized Loss on Available$-$for$-$Sale Securities