Account assistance CashDebt InvestmentsDividend RevenueFair Value Adjustment-Available-for-SaleFair Value Adjustment-StockFair Value Adjustment-TradingGain on Sale of Debt InvestmentsGain on Sale of Stock InvestmentsInterest ReceivableInterest RevenueLoss on Sale of Debt InvestmentsLoss on Sale of Stock InvestmentsNo EntryRevenue from Stock InvestmentsShort-Term InvestmentsStock InvestmentsUnrealized Gain or Loss-EquityUnrealized Gain or Loss-Income Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying$956,000 for the 47,800 shares. Carla Vista declared and paid $0.40 per share cash dividends on March 15, June 15, September 15,and December 15, 2022. Carla Vista reported net income of $326,500 for the year. At December 31, 2022, the market price of CarlaVista common stock was $26 per share.(a)Prepare the journal entries for Heidebrecht Design for 2022 assuming Heidebrecht Design cannot exercise significant influenceover Carla Vista. (Use the cost method.) (Record journal entries in the order presented in the problem. List all debit entries before creditentries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "Noentry" for the account titles and enter O for the amounts.)DateCROAccount Titles and ExplanationDebitCredit Prepare the journal entries for Heidebrecht Design for 2022, assuming Heidebrecht Design can exercise significant influence overCarla Vista. (Use the equity method.) (Record journal entries in the order presented in the problem. List all debit entries before creditentries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "Noentry" for the account titles and enter O for the amounts.)(c).DateAccount Titles and ExplanationeTextbook and MediaList of AccountsSave for LaterStock InvestmentsDividend revenueUnrealized gain incomeDebitIndicate the balance sheet and income statement account balances at December 31, 2022, under each method of accounting.CostMethodEquityMethodRevenue from stock investmentsAttempts: 0 of 2 usedCreditSubmit Answer

Question

Account assistance CashDebt InvestmentsDividend RevenueFair Value Adjustment-Available-for-SaleFair Value Adjustment-StockFair Value Adjustment-TradingGain on Sale of Debt InvestmentsGain on Sale of Stock InvestmentsInterest ReceivableInterest RevenueLoss on Sale of Debt InvestmentsLoss on Sale of Stock InvestmentsNo EntryRevenue from Stock InvestmentsShort-Term InvestmentsStock InvestmentsUnrealized Gain or Loss-EquityUnrealized Gain or Loss-Income Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying$956,000 for the 47,800 shares. Carla Vista declared and paid $0.40 per share cash dividends on March 15, June 15, September 15,and December 15, 2022. Carla Vista reported net income of $326,500 for the year. At December 31, 2022, the market price of CarlaVista common stock was $26 per share.(a)Prepare the journal entries for Heidebrecht Design for 2022 assuming Heidebrecht Design cannot exercise significant influenceover Carla Vista. (Use the cost method.) (Record journal entries in the order presented in the problem. List all debit entries before creditentries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select &#34;Noentry&#34; for the account titles and enter O for the amounts.)DateCROAccount Titles and ExplanationDebitCredit Prepare the journal entries for Heidebrecht Design for 2022, assuming Heidebrecht Design can exercise significant influence overCarla Vista. (Use the equity method.) (Record journal entries in the order presented in the problem. List all debit entries before creditentries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select &#34;Noentry&#34; for the account titles and enter O for the amounts.)(c).DateAccount Titles and ExplanationeTextbook and MediaList of AccountsSave for LaterStock InvestmentsDividend revenueUnrealized gain incomeDebitIndicate the balance sheet and income statement account balances at December 31, 2022, under each method of accounting.CostMethodEquityMethodRevenue from stock investmentsAttempts: 0 of 2 usedCreditSubmit Answer

Accepted Answer

Journal entries refers to thr process of noting all the daily activities of transactions of a…