Adjust FVA at Year-End 5M Corporation completed the following transactions, in the order given, relative to the portfolio of stocks held as equity investments measured at FV-NI. 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 Starbux, common stock Kolgate, Class A common stock Year 1 Year 2 $48 $60 38 50 Journal Entries for Year 1 Journal Entries for Year 2 Journal Entries for Year 1 Journal Entries for Year 2 a. Provide entries for 5M Corporation for the purchases of equity securities in Year 1. Credit Debit 7,850 0 0 7,850 Date Account Name (a1) Aug. 1, Year 1 Investment in Stock Cash To record investment purchase. (a2) Sept. 15, Year 1 Investment in Stock Cash To record investment purchase. 600 0 > > 0 600 Date Account Name C. Feb. 1, Year 2 Investment in Stock Cash To record investment purchase. d. June 30, Year 2 Cash Dividend Revenue To record the dividend receipt. e. Aug. 15, Year 2 Cash Investment in Stock Gain on Sale of Investment To record the sale of invesments. f. Dec. 31, Year 2 N/ADebit N/A-Credit To adjust the FVA account. > 4,350 0 0 3,925 425 0 0 0 x 0 0 x Check