Scotsland Company Had the Following Transactions Relating to Investments in Non-Influential

question 107

Essay

Scotsland Company had the following transactions relating to investments in non-influential equity securities during the year.Prepare the required general journal entries for these transactions.
May 4 Scotsland purchased 600 shares of Lobe Company stock at $120 per share plus a $750 brokerage fee.
July 1 Scotsland received a $2.50 per share cash dividend on the Lobe Company stock.
Sept.15 Sold 300 shares of Lobe Company stock for $125 per share,less a $450 brokerage fee.
Dec.31 The fair value of the Lobe Company stock (the only investment that Scotsland owns)is $124 per share.The balance of the Fair value Adjustment-Stock account had a zero balance prior to adjustment.

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Definitions:

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