Scotsland Company Had the Following Transactions Relating to Investments in Trading

Essay

Scotsland Company had the following transactions relating to investments in trading securities during the year.Prepare the required general journal entries for these transactions.
$$\begin{array} { | l | l | } \hline \text { May } 4 & \begin{array} { l } \text { Scotsland purchased } 600 \text { shares of Lobe Company stock at } \$ 120 \text { per share plus a } \\\$ 750 \text { brokerage fee. }\end{array} \\\hline \text { July 1 } & \text { Scotsland received a } \$ 2.50 \text { per share cash dividend on the Lobe Company stock. } \\\hline \text { Sept. } 15 & \begin{array} { l } \text { Sold } 300 \text { shares of Lobe Company stock for } \$ 125 \text { per share, less a } \$ 450 \\\text { brokerage fee. }\end{array} \\\hline \text { Dec. } 31 & \begin{array} { l } \text { The fair value of the Lobe Company stock (the only investment that Scotsland } \\\text { owns) is } \$ 124 \text { per share. The balance of the Fair value Adjustment-Trading } \\\text { account had a zero balance prior to adjustment. }\end{array} \\\hline\end{array}$$