Table 16-7
the Following Are Transactions in the Purchase and Sale

question 108

Essay

Table 16-7
The following are transactions in the purchase and sale of Straton Ltd. shares by Samuels Inc.
$\begin{array}{ll}\hline \text { January } 15,2017 & \text { Purchased 2,000 shares of Straton at } \$ 20.00 \text { and paid } \$ 125 \text { in brokerage fees } \\\text { February } 10,2017 & \text { Received } \$ 1.00 \text { dividend from Straton. } \\\text { December } 31,2017 & \text { Straton reported net income of } \$ 6,000 \text {. } \\\text { December 31, 2017 } & \text { Market value of Straton shares } \$ 22.00 . \\\text { June 30, 2018 } & \text { Sold all shares of Straton for } \$ 21.00 \text { per share. }\end{array}$
Record the journal entries for the above transactions for Samuels Inc.
-Refer to Table 16-7.Assume that the investment in Straton shares is classified as a long-term investment.Samuels exercises significant influence over Straton by owning 30% of the outstanding shares.Assume that Straton earned no income from January 1,2018 to June 30,2018,nor did it pay any dividends during that period.

---

Definitions:

Assimilation

In psychology, a cognitive process where individuals integrate new information into existing cognitive schemas.

Accommodation

In psychology, the process of adjusting one's cognitive structures to incorporate new information.

Schema

A cognitive framework or concept that helps organize and interpret information, allowing individuals to make sense of their experiences and the world around them.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.