Calla canoe companys alyssa and zain Walworth are pleased with the growth of their business and have decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in 2025:

1.	Journalize the transactions including any entries, if required, at December 31, 2025.
2.	Determine the effect on Calla Canoe Company's net income for the year for each of the three investments.

Jul. 1 Purchased 10,000 shares in Aldrich Outdoor Adventure Company for $4 per share. Calla Canoe does not have significant influence over Aldrich. Jul. 7 Purchased 35% of the stock of Bragg Backpacks consisting of 56,000 shares of stock (out of a total of 160,000 shares) for $1 per share. Calla Canoe does have significant influence over Bragg. Jul. 10 Purchased a bond from Cwiet Canoes with a face value of $120,000. Calla Canoe intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep. 30 Received dividends of $0.30 per share from Aldrich. Nov. 1 Received dividends of $0.60 per share from Bragg. Dec. 31 Received an interest payment of $1,200 from Cwiet Canoes. Dec. 31 Bragg Backpacks reported net income of $125,000 for the year. Calla Canoe Company's share of the net income is $21,875. Dec. 31 Adjusted the Aldrich stock for a market value of $3.95 per share. Jul. 1: Purchased 10,000 shares in Aldrich Outdoor Adventure Company for $4 per share. Calla Canoe does not have significant influence over Aldrich. \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanations & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Jul. 1} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanations & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Jul. 7} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanations & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Jul. 10} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Sep. 30: Received dividends of $0.30 per share from Aldrich. \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanations & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Sep. 30} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Nov. 1: Received dividends of $0.60 per share from Bragg. \begin{tabular}{|c|c|c|c|} \hline Date & Accounts and Explanations & Debit & Credit \\ \hline \multicolumn{4}{|l|}{ Nov. 1} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Dec. 31: Received an interest payment of $1,200 from Cwiet Canoes. \begin{tabular}{c||c|c||c|c|c|} \multicolumn{1}{c|}{ Date } & Accounts and Explanations & Debit & Credit \\ \hline \hline Dec. 31 & & \\ \hline \end{tabular} Dec. 31: Bragg Backpacks reported net income of $125,000 for the year. Calla Canoe Company's share of the net income is $21,875. \begin{tabular}{c||c|c||c|c|c|} \multicolumn{1}{c|}{ Date } & Accounts and Explanations & Debit & Credit \\ \hline \hline Dec. 31 & & \\ \hline \end{tabular} Dec. 31: Adjusted the Aldrich stock for a market value of $3.95 per share. \begin{tabular}{c||c||c||c|c|} \multicolumn{1}{c|}{ Date } & Accounts and Explanations & Debit & Credit \\ \hline \hline Dec. 31 & & \\ \hline \end{tabular} Requirement 2. Determine the effect on Calla Canoe Company's net income for the year for each of the three investments. (Enter a decrease with a minus sign or parentheses.) Review the journal entries prepared in Requirement 1