E17-7(Trading Securities Entries)On December21 2010 Zurich Company provided you

E17-7(Trading Securities Entries)On December21 2010 Zurich Company provided you with the followinginformation regarding its trading securities.December 31 2010Investments(Trading) Cost Fair Value Unrealized Gain(Loss)Stargate Corp. stock $20000 $19000$(1000)Carolina Co. stock 10000 9000 (1000)Vectorman Co. stock 20000 20600 600Total Portfolio $50000 $48600 (1400)Previous securities fair value adjustment balance-0-Securities fair value adjustmentCr.$(1400)During 2011 Carolina Company stock was sold for $9500. Thefair value of the stock on December 31 2011 was: Stargate Corp.stock-$19300; Vectorman Co. stock-$20500.(a) Prepare the adjusting journal entry needed on December31 2010.(b) Prepare the journal entry to record the sale of theCarolina Company stock during 2011. (List multiple debit/creditentries from largest to smallest amount e.g. 10 5 2.)(c) Prepare the adjusting journal entry needed on December31 2011.