5M Corporation completed the following transactions, in the order given, relative to the portfolio of stocks held as equity investments measured at FVNI. Year 1 1. Purchased 150 shares of Starbux Corporation common stock (par value $1) at $50 per share plus a brokerage commission of 4% and transfer costs of $50 on August 1, Year 1. 2. Purchased 300 shares of Kolgate Corporation Class A common stock (par value $0.50) at $35 per share plus transfer costs of $75 on September 15, Year 1. Year 2 1. Purchased 275 shares of Starbux Corporation common stock at $55 per share plus a brokerage commission of 4% and transfer costs of $60 on February 1, Year 2. 2. Received declared cash dividends of $2.00 per share on the Kolgate Corporation Class A common stock on June 30, Year 2. 3. Sold 75 shares of Starbux Corporation common stock at $58 per share on August 15, Year 2.

Year-End Stock Prices	Year 1	Year 2
Starbux, common stock	$48	$60
Kolgate, Class A common stock	38	50

Please fix the wrong part(b,c,d,e,f)

a. Provide entries for 5M Corporation for the purchases of equity securities in Year 1. Date Credit Account Name Investment in Stock Cash Debit 7,850 (a1) Aug. 1, Year 1 0 0 7,850 To record investment purchase. (a2) Sept. 15, Year 1 Investment in Stock Cash 10,575 0 0 10,575 To record investment purchase. b. Provide entries for 5M Corporation to adjust securities to fair value on December 31, Year 1. Debit Credit 900 0 X Date Account Name (a1) Aug. 1, Year 1 Fair Value Adjustment-Equity Securities Unrealized Gain or Loss-Income To adjust investments to fair value at year-end. 0 600 X c. Record the purchase of Starbux Corporation common stock in Year 2. d. Record the receipt of declared dividends on the Kolgate common stock in Year 2. e. Record the sale of Starbux common stock in Year 2. Assume FIFO (first-in, first-out) order when shares are sold. f. Provide the entry for 5M Corporation on December 31, Year 2, to adjust the Fair Value Adjustment account. Account Name Debit Credit Date c. Feb. 1, Year 2 0 0 X 0 0X To record investment purchase. d. June 30, Year 2 0 OX 0 0X To record the dividend receipt. e. Aug. 15, Year 2 0 0 X 0 0 X 0 0 X To record the sale of invesments. f. Dec. 31, Year 2 0 0 X 0 0 X To adjust the FVA account