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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.)
1
View transaction list View journal entry worksheet
1
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
Ⓒ
Transcribed Image Text: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.) 1 View transaction list View journal entry worksheet 1 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 Ⓒ
2. Calculate the balance of the Investments account on December 31.
Investments, December 31
Transcribed Image Text:2. Calculate the balance of the Investments account on December 31. Investments, December 31
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