Samson Company is a wholesaler of men’s hair products. The following transactions relate to certain securities acquired by Samson Company, which has a fiscal year ending on December 31: 2006
Jan. 3 Purchased 3,000 shares of the 40,000 outstanding common shares of Davidson Corporation at 67 per share plus commission and other costs of $468.
July 2 Received the regular cash dividend of $1.30 a share on Davidson Corporation stock.
Dec. 5 Received the regular cash dividend of $1.30 a share plus an extra dividend of $0.10 a share on Davidson Corporation stock. (Assume that all intervening transactions have been recorded properly and that the number of shares of stock owned have not changed from December 31, 2006, to December 31, 2009.) 2010
Jan. 2 Purchased an influential interest in Comstock, Inc., for $760,000 by purchasing 24,000 shares directly from the estate of the founder of Comstock. There are 80,000 shares of Comstock, Inc., stock outstanding.
July 6 Received the regular cash dividend of $1.30 a share and a 3% stock dividend on the Davidson Corporation stock.
Oct. 23 Sold 750 shares of Davidson Corporation stock at 78. The broker deducted commission and other costs of $140, remitting the balance.
Dec. 10 Received a cash dividend at the new rate of $1.50 a share on the Davidson Corporation stock.
31 Received $32,000 of cash dividends on Comstock, Inc., stock. Comstock, Inc., reported net income of $350,000 in 2010. Samson uses the equity method of accounting for its investment in Comstock, Inc.
Instructions
Journalize the entries for the preceding transactions.