on july 1 2007, the JEM Corporation acquired the following invesments:

2,000 shares of Rawn, Inc. common stock for 60,000

12,000 shares of lively Corp. common stock for 336,000

1,200 5% debentures of Lynn Company for 1,200,000

4,200 shares of Smith Co. preferred stock for $100,800

At December 31, 2007, Rawn 's common stock was selling for $25 per share, while Smith's prefered stock was quoted at $32 per share. JEM's year - end investment in Lively, which represented 20% of Lively outstanding common shares, was worth 300,000. LIvely 's net loss for 2007 was 240,000. The Lynn debenture had declined in value to $1,120,000. JEM planned to hold lthe debenturs until they matured on June 30th. JEM had no immediate plans to dispose of either lthe Rawn or Smith Securities.

Effective December 31, 2007, What journal entries would JEM make with regards to these investments?

On JUly 1, 2008, JEM sold Lively's common stock for 340,000 and the Lynn debentures for $1,000,000. At the time of lthe sale, Lively's earnings for the year were at the break even point. At December 31, 2008, Rawn's common stock had a market value of $18 per share, and the Smith investment was worth $109,200.

What journal entries would JEM, make with regards to these investments in 2008.