Question

On January 1, Year 11, Rogest Corporation purchased 15,000 common shares of Steven Ltd for $8.50...

On January 1, Year 11, Rogest Corporation purchased 15,000 common shares of Steven Ltd for $8.50 per share plus $2,500 in commission. Steven Ltd had 100,000 common shares outstanding. During Year 11, Steven earned net income of $80,000. On December 31, Year 11, Steven declared dividends of $20,000. The investment in Steven Ltd shares were trading at $9.30 per share at December 31, Year 11.
On February 1, Year 12, Steven paid the dividends. During Year 12, Steven incurred a net loss of $40,000. At December 31, Year 12, investment in Steven Ltd shares was trading at $8.90 per share.
January 15, Year 13, Rogest sold its investment in Steven Ltd for $9.20 per share less $500 in commission
Rogest elected to account for its passive investments in shares under Fair Value thru OCI method and record dividends income separately. Rogest year end is December 31
Required:
i) Prepare all journal entries for Year 11 and Year 12 .
ii) Prepare the journal entry(ies) to record the sale on January 15, Year 13 and any
closing entry relating to the sale .
Show all calculations for full marks. Round to the nearest dollar
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