On January 7, 2022, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $125,000 as an equity investment. Webb does not have significant influence or control over Bloomberg. During 2022 Bloomberg paid Webb dividends for $2000. Although Class A shares are not actively traded, but the shares fair value are estimated to be $137,000 on December 31, 2022. Webb makes the appropriate election to measure the investment based on observable price changes for similar securities. On December 12, 2023, Webb Industries sells the Bloomberg stock for $90,000. As of the end of 2023, Webb has no investments in equity securities. 

Prepare the journal entries to record the purchase of the stock, the sales of the stocks, and any required adjustments at the end of 2022 and 2023.

Answer rating: 100% (QA)

Journal entries for 2022 To record the purchase of the Bloomberg ... View the full answer