Sheffield Corporation purchased 1,250 common shares of Nolan Inc. common stock for $15,000 (Sheffield does not have significant influence). During the year, Nolan paid a cash dividend of $4.10 per share. At year end, Nolan stock was selling for $35.40 per share.

Prepare Sheffield's journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the 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.)

Account Titles and Explanation

Debit

Credit

Prepare Sheffield's journal entry to record the dividends received. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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.)

Account Titles and Explanation

Debit

Credit

Prepare Sheffield's journal entry to record the fair value adjustment (Assume a zero balance in the Fair Value Adjustment account.). (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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.)

Account Titles and Explanation

Debit

Credit

Cash

Debt Investments

Dividend Revenue

Fair Value Adjustment-Available-for-Sale

Fair Value Adjustment-Stock

Fair Value Adjustment-Trading

Gain on Sale of Debt Investments

Gain on Sale of Stock Investments

Interest Receivable

Interest Revenue

Loss on Sale of Debt Investments

Loss on Sale of Stock Investments

No Entry

Revenue from Stock Investments

Short-Term Investments

Stock Investments

Unrealized Gain or Loss-Equity

Unrealized Gain or Loss-Income