Hampton Ltd. produces and sells children's toys. The company began operations on January 1, 2015. The following transactions relate to securities acquired by Hampton Ltd., which has a fiscal year ending on December 31:

2015

Jan. 10. Purchased 2,000 shares of the 150,000 outstanding shares of Climbing Inc. as an available-for-sale investment at $48 per share, plus a brokerage commis- sion of $1,500.

Mar. 12. Received the regular cash dividend of $0.90 per share.

Sep. 9. Climbing Inc. shares split 2 for 1 and paid a cash dividend of $0.45 per new Climbing Inc. share, paid after the split.

Oct. 14. Sold 500 shares of Climbing Inc. at $20 per share, less a brokerage commis- sion of $200.

Dec. 31. Climbing Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $27 per share.

2016

Jan. 5. Purchased a strategic interest in Roy Ball Inc. for $370,000 by purchasing 50,000 shares directly from the estate of the founder of Roy Ball Inc. There are 200,000 shares of Roy Ball Inc. outstanding.

Mar. 8. Received the regular cash dividend of $0.50 per Climbing Inc. share.

Sep. 10. Received the regular cash dividend of $0.50 per share plus an extra dividend of $0.15 per Climbing Inc. share.

Dec. 31. Received $42,000 of cash dividends on Roy Ball Inc. shares. Roy Ball Inc. reported net income of $154,000 in 2016. Hampton Ltd. uses the equity method of accounting for its investment in Roy Ball Inc.

31. Climbing Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $22 per share.

Instructions

1. Journalize the entries to record these transactions. Hampton Ltd. expenses brokerage fees.

2. Prepare the investment-related asset and shareholders' equity statement of finan- cial position disclosures for Hampton Ltd. on December 31, 2016, assuming the Retained Earnings balance on December 31, 2016, is $280,00.