BE17-5 Your answer is correct. Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as an available-for- sale investment for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share. Prepare Fairbanks's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. Descripti on/Account a) Equity Investments (AFS) (b) Cash Dividend Revenue air Value Adjustment (AFS Unrealized Holding Gain or Loss-Equity ebi 13200 1300 1300 BE17-5 Your answer is correct. Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as an available-for- sale investment for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share. Prepare Fairbanks's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. Descripti on/Account a) Equity Investments (AFS) (b) Cash Dividend Revenue air Value Adjustment (AFS Unrealized Holding Gain or Loss-Equity ebi 13200 1300 1300