Teal Corporation purchased $440$ shares of Sherman Inc. common stock for $$12,000($Teal does not have significant influence$).$ During the year, Sherman paid a cash dividend of $$3\mathrm{.}25$ per share. At year$-$nd$,$ Sherman stock was selling for $$34\mathrm{.}50$ per share. Assume the stock is nonmarketable.

Prepare Teal'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.$)($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.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

$$

$($b$)$

$$

$$

$$

$$

$$

$($c$)$

$$