### Sunland Corporation#### Analysis of Investments Account_For the Year Ended December 31, 2025_During the course of your examination of the financial statements of Sunland Corporation for the year ended December 31, 2025, you found a new account titled "Investments." Your examination revealed that during 2025, Sunland began a program of investments, and all investment-related transactions were entered into this account. Your analysis of this account for 2025 is detailed below:---**Sunland Corporation** **Analysis of Investments Account** **For the Year Ended December 31, 2025**| Date – 2025 | Details | Debit | Credit ||-------------|-------------------------------------------------------------------------------------------------------------|-----------|-----------|| (a) | **Blossom Company Common Stock** | | || Feb. 14 | Purchased 3,900 shares @ $66 per share. | $257,400 | || July 26 | Received 390 shares of Blossom Company common stock as a stock dividend. (Memorandum entry in general ledger.) | | || Sept. 28 | Sold the 390 shares of Blossom Company common stock received July 26 @ $70 per share. | | $27,300 || (b) | **Daniel Inc. Common Stock** | | || Apr. 30 | Purchased 18,100 shares @ $42 per share. | $760,200 | || Oct. 28 | Received dividend of $1 per share. | | $18,100 |---### Narrative Explanation#### Blossom Company Common Stock1. **Purchase on February 14** - Sunland Corporation purchased 3,900 shares of Blossom Company common stock at $66 per share, resulting in a debit of $257,400.2. **Stock Dividend on July 26** - The company received 390 shares of Blossom Company common stock as a stock dividend. This is a memorandum entry recorded in the general ledger, hence no immediate debit or credit value.3. **Sale on September 28** - Sunland Corporation sold the 390 shares received from the July 26 stock dividend at a price of $70 per share, leading to a credit of $27,300.#### Daniel Inc. ### Fair Value Analysis and Correcting Journal Entries for Investments in 2025#### 1. Fair Value of SecuritiesThe table below shows the fair value for each security on specific dates in 2025:| Security | Feb. 14 | Apr. 30 | July 26 | Sept. 28 | Dec. 31 ||-----------------|---------|---------|---------|----------|---------|| Blossom Company | $66 | $74 | $70 | $76 | $76 || Daniel Inc. | $42 | $35 | | | || Sunland Corp. | $25 | $28 | $30 | $35 | $35 |#### Notes:2. All of Sunland's investments are nominal with respect to the percentage of ownership (5% or less).#### a(1): Journal Entries for Blossom Company InvestmentsPrepare any necessary correcting journal entries related to investments in Blossom Company. - **Instruction:** List all debit entries before credit entries. 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 ||--------------------------------|-------------|-------------|| Correct entry: | | |This section is for educators to comprehend that when preparing correcting journal entries, it should be ensured that all debit entries precede credit entries. Attention must be given to the automatic indentation of credit entries in accounting software. If no journal entry is necessary for a particular transaction, it's important to select "No Entry" and enter 0 for the amounts to maintain accuracy in records.#### Diagram/Graph Description:- **Table Format:** The provided table is a straightforward tabulation of the fair value of three securities over five different dates throughout the year 2025. - **Rows:** Each row represents a different security. - **Columns:** Each column denotes a specific date, and the corresponding cell values indicate the fair value of the security on that date.This structured information helps in understanding the fluctuations in the fair value of investments over time, which is crucial for making informed financial decisions and adjustments in accounting records.#### ConclusionUnderstanding and recording the fair values of securities on specified dates are critical steps in maintaining accurate financial records. Properly preparing journal entries ensures

Journal entry refers to the recording of business transactions in the debit and credit format which…

(a1) Prepare any necessary correcting journal entries related to investments in Blossom Company. (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 O for the amounts.) Account Titles and Explanation Correct entry: Debit Credit

(a1) Prepare any necessary correcting journal entries related to investments in Blossom Company. (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 O for the amounts.) Account Titles and Explanation Correct entry: Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(b) To record estimated liability. (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 O for the amounts. List all debit entries before credit entries.) Period 1 Account Titles and Explanation Period 2 Account Titles and Explanation Save for Later Debit Debit Credit Credit Attempts: 0 of 1 used Submit Answer
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