Question

Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock.
March 1 Purchases 3,000 shares of Power Drive Corporation’s common stock for $ 62 per share.
July 1 Receives a cash dividend of $ 1.25 per share.
October 1 Sells 750 shares of Power Drive Corporation’s common stock for $ 70 per share.
December 31 The fair value of Power Drive Corporation’s common stock is $ 75 per share.

Required:
1. Record each of these transactions, including an adjustment on December 31 for the investment’s fair value, if appropriate.
2. Calculate the balance of the Investments account on December 31.



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  • CreatedJuly 15, 2014
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