Question: At the end of the year, White Company had 4,000 shares of Doc common stock costing $8.30 per share and 3,000 shares of Sleepy preferred stock costing $120 per share. The market prices of the stocks on December 31were Doc $7 per share and Sleepy $121 per share. Assuming the stock investments had been purchased as trading securities:
(1) give the adjusting entry required on December 31;
(2) indicate the financial statement presentation of the investment accounts on December 31--be sure to indicate whether the accounts are presented on the income statement or balance sheet and the amounts.