Sheridan James Inc. acquired 20% of the outstanding common stock of Theresa Blossom Inc. on December 31, 2025. The purchase price was $1,212,000 for 50,500 shares. Blossom Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2026. Blossom reported net income of $730,000 for 2026 . The fair value of Blossom's stock was $27 per share at December 31,2026 . Assume that the security is a trading security. (a) Prepare the journal entries for Sheridan James Inc. for 2025 and 2026, assuming that James cannot exercise significant influence over Blossom. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) List of Accounts