Mr. T's Fashions, once a direct competitor to Italian Stallion's clothing line, has formed a friendship in recent years leading to a small investment (less than 5%) by Mr. T in the common stock of Italian Stallion. Mr. T's engages in the following transactions relating to its investment. February 1 Purchases 100 shares of Italian Stallion common stock for $15.90 per share. June 15 Sells 40 shares of Italian Stallion stock for $13.80 per share. October 31 Receives a cash dividend of $0.55 per share. December 31 The fair value of Italian Stallion's stock is $11.80 per share. Required: 1. Record each of these transactions, including an adjustment on December 31 for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet i i No 1 2 3 4 Date February 01 June 15 October 31 December 31 Investments Cash Cash Loss Investments Cash Dividend Revenue General Journal Unrealized Holding Loss-Net Income Investments Debit 1,590 Credit 1,590

Mr. T's Fashions, once a direct competitor to Italian Stallion's clothing line, has formed a friendship in recent years leading to a small investment (less than 5%) by Mr. T in the common stock of Italian Stallion. Mr. T's engages in the following transactions relating to its investment. February 1 Purchases 100 shares of Italian Stallion common stock for $15.90 per share. June 15 Sells 40 shares of Italian Stallion stock for $13.80 per share. October 31 Receives a cash dividend of $0.55 per share. December 31 The fair value of Italian Stallion's stock is $11.80 per share. Required: 1. Record each of these transactions, including an adjustment on December 31 for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet i i No 1 2 3 4 Date February 01 June 15 October 31 December 31 Investments Cash Cash Loss Investments Cash Dividend Revenue General Journal Unrealized Holding Loss-Net Income Investments Debit 1,590 Credit 1,590

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 2SEA

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