Using the data in MA-3, assume that James Company purchased the voting stock of Andrew Corporation for the trading securities portfolio instead of the available-for-sale securities portfolio. Give the journal entries for each of the transactions listed.
Data in MA-3
During December of the current year, James Company acquired some of the 50,000 outstanding shares of the common stock, par $12, of Andrew Corporation as available-for-sale investments. The accounting period for both companies ends December 31. Give the journal entries for each of the following transac-tions that occurred during the current year:
Dec. 2 Purchased 6,250 shares of Andrew common stock at $15 per share.
Dec. 15 Andrew Corporation declared and paid a cash dividend of $2 per share.
Dec. 31 Determined the current market price of Andrew stock to be $12 per share.