Question: At the end of 2015, Terry Company prepared the following schedule of investments in available-for-sale securities (common stock):
| Company | Cost | 12/31/15 Fair Value | Cumulative Change in Fair Value |
| Morgan Company |
$37,000 |
$34,200 |
$(2,800) |
| Nance Company |
42,000 |
43,100 |
1,100 |
| Totals |
$79,000 |
$77,300 |
$(1,700) |
During 2016, the following transactions occurred:
| June 8 |
Purchased Oscar Company common stock for $50,000. |
| Oct. 11 |
Sold all of the Morgan Company securities for $35,400. |
| Dec. 31 |
Received dividends of $900 on the Nance Company and Oscar Company securities, and the following year-end total market values were available: Nance Company common stock, $43,900; Oscar Company common stock, $49,600. |
Required: 1. Prepare journal entries to record the preceding information.
2. Show how the preceding items are reported on Terry's December 31, 2016, balance sheet. Assume all investments are noncurrent.