Houston Company engaged in the following investment transactions
during the current year.
Feb. | 17 | Purchased 490 shares of Medical Company common stock for $15 per share plus a brokerage commission of $150. Houston does not have significant influence over Medical Company. | ||
April | 1 | Bought 29,000 of the 100,000 outstanding shares of Olde Company for $290,000. Goodwill of $79,000 was included in the price. | ||
June | 25 | Received a $1.30 per share dividend on Medical Company stock. | ||
June | 30 | Olde reported second-quarter profits of $19,000. | ||
Oct. | 1 | Purchased 1,900 bonds of Alpha Company for $14 per bond plus a brokerage fee of $390. These bonds are classified as securities available-for-sale. | ||
Dec. | 31 | Medical Company shares are selling for $20 and Alpha bonds are selling for $11. |
Required:
Prepare the appropriate journal entries to record the transactions
for the year, including year-end adjustments.
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