Blossom Co$.$ acquired $25\%$ of the $470,000$ shares of outstanding common stock of Sheridan Inc.

on December $31,2025.$ The purchase price was $$3,466,250.$ Sheridan declared and paid $$1\mathrm{.}20$

per share cash dividends on June $18,2026,$ and on November $29,2026.$ Sheridan reported net

income of $$1,220,000$ for $2026.$ The fair value of Sheridan common stock was $$26$ per share at

December $31,2026.$

$($a$)$

Prepare the journal entries for Blossom Co$.$ for $2026,$ assuming that Blossom cannot exercise

significant influence over Sheridan. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts. List all debit entries before credit entries. Record journal entries in

the order presented in the problem.$)$

Date Account Titles and Explanation

Debit