P16.3A Journalize transactions and adjusting entry for stock investments On December 31, 2020, Turnball Associates owned the following securities, held as a long-term investment.The securities are not held for influence or control of the investee. Common Stock Shares Cost Gehring Co. 2,000 $60,000 Wooderson Co. 5,000 45,000 Kitselton Co. 1,500 ` 30,000 On December 31, 2020, the total fair value of the securities was equal to its cost.In 2021, the following transactions occurred. Aug 1 Received $0.50 per share cash dividend on Gehring Co. common stock. Sept. 1 Sold 1,500 shares of Wooderson Co. common stock for cash at $8 per share. Oct. 1 Sold 800 shares of Gehring Co. common stock for cash at $33 per share. Nov. 1 Received $1 per share cash dividend on Kitselton co. common stock. Dec. 15 Received $0.50 per share cash dividend on Gehring co. common stock. Dec. 31 Received $1 per share annual cash dividend on Wooderson Co. common stock. At December 31, the fair values per share of the common stocks were: Gehring Co. $32, Wooderson Co. $8, and Kitselton Co. $18. Instructions (a) Journalize the 2021 transactions and post to the account Stock Investments. (Use the T-account form.) (b) Prepare the adjusting entry at December 31, 2021, to show the securities at fair value.The stock should be classified as available-for-sale securities. (c ) Show the balance sheet presentation of the investments at December 31, 2021. At this date, Turnball Associates has common stock $1,500,000 and retained earnings $1,000,000. NOTE:Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) 2021 Aug. 1 Account 1000 Account 1000 Sept. 1 Account 11700 Account 1800 Account 13500 Oct 1 Account 25900 Account 24000 Account 1900 Nov 1 Account 1500 Account 1500 Dec. 15 Account 600 Account 600 Dec 31 Account 3500 Account 3500 Stock Investments 2021 2021 Jan. 1 Balance 135,000 Sept. 1 13,500 Oct. 1 24,000 2021 Dec. 31 Balance 97,500 (b) Dec. 31 Account 4,100 Account 4,100 Security Cost Fair Value Gehring Co. common $36,000 $38,400 Wooderson Co. common 31,500 28,000 Kitselton Co. common 30,000 27,000 $97,500 $93,400 (c ) Investments Investments in stock of less than 20% owned companies, at fair value $93,400 Stockholders' equity Common stock $1,500,000 Retained earnings 1,000,000 Total paid-in capital and retained earnings 2,500,000 Less: Unrealized loss on available-for-sale securities 4,100 Total stockholders' equity $2,495,900 After you have completed the requirements of P16.3A, consider the additional question. Answers are on the other tab in this file. 1. Suppose that shares of Wooderson Co. were sold for $10/share and shares of Gehring Co. were sold for $35/share.Also assume the fair values at December 31 were: Gehring Co. $28, Wooderson Co. $10, and Kitselton Co. $19.Show revised journal entries to record these sales and to adjust securities to fair value.Also show revised balance sheet presentation.