Big Seven Insurance Ltd. owns numerous investments in the shares of other companies. Assume Big Seven Insurance

Question:

Big Seven Insurance Ltd. owns numerous investments in the shares of other companies. Assume Big Seven Insurance Ltd. completed the following investment transactions:
2014 Feb. 12 Purchased 30,000 (total issued and outstanding common shares, 120,000) common shares of Earl Mfg. Ltd. at a cost of $2,550,000. Commissions on the purchase were $15,000.
Jul. 2 Purchased 6,000 additional Earl Mfg. Ltd. common shares at a cost of $88.00 per share. Commissions on the purchase were $400.
Aug. 9 Received the annual cash of $2.00 per share on the Earl Mfg. Ltd. investment.
Oct. 16 Purchased 2,000 Excellence Ltd. common shares as a short-term investment, paying $63.00 per share plus brokerage commission of $500.
Nov. 30 Received the semiannual cash of $2.50 per share on the Excellence Ltd. investment.
Dec. 31 Received the annual report from Earl Mfg. Ltd. Net income for the year was $1,160,000. Of this amount, Big Seven Insurance Ltd.'s proportion is 30 percent.
31 The current market value of the Excellence shares is $140,000.
2015 Jan. 14 Sold 5,000 Earl Mfg. Ltd. shares for $460,000, less commissions of $800.
Required
Record the transactions in the general journal of Big Seven Insurance Ltd. The company's yearend is December 31.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...