The first picture is the question and the second is the solution. Could you please explain to me in words what is the meaning of each entry and how the numbers are calculated. Thank you.

FINANCIAL ACCOUNTING On July 1, 2017, the JEM Corporation acquired the following investments 2,000 shares of Rawn, Inc. common stock for $60,000 osh 12,000 shares of Lively Corp. common stock for $336,000 s/sh 1,200 5% debentures of Lynn Company for $1,200,000- 4.200 shares of Smith Co. preferred stock for $100,800,79 (sh At December 31, 2017, Rawn's common stock was sellina for ($25 per share, while Smith's preferred stock was quoted at $32 per share. JEM's year-end investment in Lively, which represented 20% of Lively's outstanding common shares, was worth $300,000. Lively's net loss for 2017 was $240,000. The Lynn debentures had declined in value to $1,120,000. JEM planned to hold the debentures until they matured; the debentures were originally dated July 1st, and they pay interest annually on June 30th JEM has no immediate plans to dispose of either the Rawn or Smith securities. What journal entries would JEM make with regard to these investments on December 31, 2017? On July 1, 2018, JEM sold Lively's common stock for $340,000 and the Lynn debentures for $1,000,000. At the time of the sale, Lively's earnings for the year were at the break- even point. At December 31, 20018, Rawn's common stock had a market value of $18 per share, and the Smith investment was worth $109,200. What journal entries would JEM make for these investments during the period July 1 December 31, 2018