Question 1.

Question 2.

During 2021, Colorado Co. stock was sold for $9,270. The fair value of the stock on December 31, 2021, was Clemson Corp. stock$17,800; Buffaloes Co. stock $19,100. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021. Bramble Corporation purchased 390 shares of Sherman Inc. common stock for $12,600 (Bramble does not have significant influence). During the year, Sherman paid a cash dividend of $3.00 per share. At year-end, Sherman stock was selling for $34.00 per share. Prepare Bramble's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) During 2021, Colorado Co. stock was sold for $9,270. The fair value of the stock on December 31, 2021, was Clemson Corp. stock$17,800; Buffaloes Co. stock $19,100. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31, 2021. Bramble Corporation purchased 390 shares of Sherman Inc. common stock for $12,600 (Bramble does not have significant influence). During the year, Sherman paid a cash dividend of $3.00 per share. At year-end, Sherman stock was selling for $34.00 per share. Prepare Bramble's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)