In January the management of Darden Restaurant concludea that it has sufficient cash to purchase some short-term investments in debt and stock securities During the year, these transactions occurred: Feb 1 Purchased 800 shares of California Pizza common stock for $41.800 Date Account Debit Credit Mar 1: Purchased 550 shares of Burger King common stock for $20,300. Account Debit Credit Date April 1: Purchased 75, $1,000, 12% McDonalds bonds for $76,200. Interest is payable semiannually on April 1 and October 1. Date Account Debit Credit July 1: Received a cash dividend of 6.50 per share on the California Pizza common stock. Date Account Debit Credit Aug 1: Sold 200 shares of California Pizza common stock at S43 per share. Date Account Debit Credit Sept 1 Received $1 per share cash dividend on the Burger King common stock. Date Account Debit Credit Oct 1: Received the semiannual interest on the McDonalds bonda Date Account Debit Credit Oct 1: Sold the McDonalds bonds for $72,000. Date Account Debit Credit b. Prepare the adjusting entry at December 31, to report the investments at fair value. All securities are considered to be trading securities. FMV are California Pizza (540) and Burger King (532) Cost Fair Value Security California Pizza stock Burger King stock Total Journal entry to record the investments at fair market value. Date Account Debit Credit Problem 2: Lambert Corporation 11: Lambert Corporation purchased a 25% equity investment in Dougherty Corporation for $150,000. Date Account Debit Credit 12/31: Dougherty dedared and paid a $80,000 cash dividend. Date Account Debit Credit 12/31: Dougherty reported net income of $380,000. Date Account Debit Credit Determine the amount to be reported as an investment in Dougherty stock at December 31. Investment in Dougherty, 11 Less: Dividend Received Plus: Share of reported income Investment in Dougherty, 12/31