Question: Mr T s Fashions once a direct competitor to Italian Stallion s

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 150 shares of Italian Stallion common stock for $ 16 per share.
June 15 Sells 50 shares of Italian Stallion stock for $ 14 per share.
October 31 Receives a cash dividend of $ 0.50 per share.
December 31 The fair value of Italian Stallion’s stock is $ 12 per share.

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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