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Jagger Company (“the Company”) owned 32,000 shares of Bowie…

Jagger Company (“the Company”) owned 32,000 shares of Bowie Corporation. The shares were purchased in 2022 for $512,000 and are carried on the Company’s books at historical cost. On January 20, 2023, the Company declared a property dividend that consisted of one share of Bowie Corporation for every ten shares held by the Company’s shareholders. On the date of declaration, each share of Bowie Corporation was trading for $23 per share and the Company had 230,000 shares of its own stock outstanding. What is the net impact on total stockholders’ equity on the date of declaration?

(b) (4 Points) For each of the following independent situati…

(b) (4 Points) For each of the following independent situations, prepare the journal entry that the Company would have instead recorded on December 31, 2024 (related only to the fair value of the investment) if the investment had originally been classified as follows rather than as available-for-sale. If no journal entry is required in any of the situations, write “no journal entry is required” – DO NOT LEAVE BLANK.

March 1, 2026: Account Debit Credit [account1] [debit1]…

March 1, 2026: Account Debit Credit [account1] [debit1] [credit1] [account2] [debit2] [credit2] [account3] [debit3] [credit3] [account4] [debit4] [credit4] [account5] [debit5] [credit5] [account6] [debit6] [credit6] [account7] [debit7] [credit7] [account8] [debit8] [credit8] [account9] [debit9] [credit9] [account10] [debit10] [credit10] Note: Disregard the fact that this question is labeled as having “0 points” – this question does have points associated and you should answer this question. This question and the previous question will be graded together for a combined total of 18 points.

Question 1. On October 1, 2025, the Company issued $400,000…

Question 1. On October 1, 2025, the Company issued $400,000 of 7%, 5-year bonds. The market rate at the time of issue was 9%. The bonds pay interest semiannually on April 1 and October 1 each year. The Company uses the effective-interest method to amortize any discount or premium. On March 1, 2026, the Company redeems the bonds at 102 plus accrued interest. Required: (a) (18 Points) Record the journal entries for the Company for each of the requested dates below. If required to round, round final answers to the nearest whole dollar. Assume that the Company prepares annual adjusting entries on December 31 each year. If no journal entry is required, write “no journal entry is required” – DO NOT LEAVE BLANK.