(Equity Securities Entries) On December 21, 2025, Bucky Katt Company provided you with the following information regarding its equity investments.

Investments	Cost	Fair value	Unrealized gain (loss)
Clemsom Corp. stock	$20,000	$19,000	($1,000)
Colorado Co. stock	10,000	9,000	(1,000)
Buffaloes Co. stock	20,000	20,600	600
Total of portfolio	50,000	48,600	(1,400)
Previous fair value adjustment balance			-0-
Fair value adjustment Cr			($1,400)

During 2026, Colorado Co. stock was sold for $9,400. The fair value of the stock on December 31, 2026, was Clemson Corp. stock$19,100; Buffaloes Co. stock$20,500. None of the equity investments result in significant influence.

Instructions

a. Prepare the adjusting journal entry needed on December 31, 2025.

b. Prepare the journal entry to record the sale of the Colorado Co. stock during 2026.

c. Prepare the adjusting journal entry needed on December 31, 2026.