Mr Ts Fashions, once a direct competitor to Italian Stallions 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 Ts engages in the following transactions relating to its investment February 1 Purchas...

Requirement 1 February 1 Debit Credit Investments 2400 Cash 2400 Purc ...

Mr. Ts Fashions, once a direct competitor to Italian Stallions clothing line, has formed a friendship in

Question:

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 of Italian Stallion. Mr. T’s engages in the following transactions relating to its investment.
February 1 Purchases 150 shares of Italian Stallion for $ 16 per share.
June 15 Sells 50 shares of Italian Stallion stock for $ 14 per share.
October 31 Receives a cash of $ 0.50 per share.
December 31 The fair value of Italian Stallion’s stock is $ 12 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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...