Question: During the year ended December 31, 2012, McCormick Inc. had the following transactions for its trading investments: Jan. 1 Purchased 2,000 Starr Corporation $5, preferred

During the year ended December 31, 2012, McCormick Inc. had the following transactions for its trading investments:

Jan. 1 Purchased 2,000 Starr Corporation $5, preferred shares for $210,000 cash.

Apr. 1 Received quarterly cash dividend.

July 1 Received quarterly cash dividend.

2 Sold 500 Starr shares for $57,000 cash.

Oct. 1 Received quarterly cash dividend.

Nov. 22 Starr declared the quarterly dividend on November 22, to preferred shareholders of record on December 15, payable on January 1.

Dec. 31 Starr's shares were trading at $115 per share.

Instructions

(a) Record the above transactions.

(b) Prepare any required adjusting entries at December 31. If no adjusting entries are required, explain why.

(c) On February 15, 2013, McCormick sold 500 Starr shares for $117 per share. Record the sale of the shares

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