Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 512,000 $ 389,000 $ (123,000 ) ANC Corporation 466,000 512,000 46,000 Totals $ 978,000 $ 901,000 $ (77,000 ) Long term: Drake Corporation $ 512,000 $ 576,000 $ 64,000 Aaron Industries 704,000 676,000 (28,000 ) Totals $ 1,216,000 $ 1,252,000 $ 36,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry

Loreal-American Corporation

1. Adjusting Journal Entries;

Debit Unrealized Loss: Short-term Investments $123,000

Credit Investment in Blair Inc. $123,000

To record the unrealized loss on Investment in Blair Corporation.

Debit Investment in ANC Corporation $46,000

Credit Unrealized Gain: Short-term Investments $46,000

To record the unrealized loss on Investment in ANC Corporation.

Debit Investment in Drake Corporation $64,000

Credit Unrealized Gain on Long-term Investments $64,000

To record the unrealized gain on Investment in Drake Corporation.

Debit Unrealized Loss on Long-term Investments $28,000

Credit Investment in Aaron Industries $28,000

To record the unrealized loss on Investment in Aaron Industries.

2. Amount reported in the Income Statement at December 31, 2021 from the adjusting entry:

Unrealized Loss on Short-term Investments $77,000

Unrealized Gain on Long-term Investments $36,000

Unrealized Loss on Available for sale Investments  $41,000

Explanation:

                                           Cost         Fair Value       Unrealized Holding

                                                                                           Gain (Loss)

Short term: Blair, Inc.     $ 512,000       $ 389,000           $ (123,000)

ANC Corporation             466,000           512,000                46,000

Totals                            $ 978,000        $ 901,000             $ (77,000)

Long term:

Drake Corporation       $ 512,000       $ 576,000             $ 64,000

Aaron Industries             704,000          676,000                (28,000)

Totals                         $ 1,216,000     $ 1,252,000             $ 36,000

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;