Jackson Company engaged in the following investment transactions
during the current year.
Feb. | 17 | Purchased 560 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. Jackson does not have significant influence over Medical. | ||
April | 1 | Bought 36,000 of the 100,000 outstanding shares of Olde Company for $360,000. Goodwill of $86,000 was included in the price. | ||
June | 25 | Received a $1.20 per share dividend on Medical Company stock. | ||
June | 30 | Olde Company reported second-quarter profits of $26,000. | ||
Oct. | 1 | Purchased 2,600 bonds of Alpha Company for $15 per bond plus a brokerage fee of $460. These bonds are classified as securities available-for-sale. | ||
Dec. | 31 | Medical Co. shares are selling for $25 and Alpha bonds are selling for $12. |
Required:
Prepare the appropriate journal entries to record the transactions
for the year, including year-end adjustments
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