Question $31$

Blossom Co$.$ acquired $25\%$ of the $520,000$ shares of outstanding common stock of Bridgeport Inc. on December $31,2025.$ The

purchase price was $$3,874,000.$ Bridgeport declared and paid $$1\mathrm{.}10$ per share cash dividends on June $18,2026,$ and on November $29,$

Bridgeport reported net income of $$1,180,000$ for $2026.$ The fair value of Bridgeport common stock was $$27$ per share at

December $31,2026.$

$($a$)$

Prepare the journal entries for Blossom Co$.$ for $2026,$ assuming that Blossom cannot exercise significant influence over

Bridgeport. $($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. List all debit entries before credit entries. Record journal entries in the

order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit