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.
May 4 Scotsland purchased 600 shares of Lobe Company stock at $120 per share plus a
$750 brokerage fee.
July 1 Scotsland received a $2.50 per share cash dividend on the Lobe Company stock.
Sept. 15 Sold 300 shares of Lobe Company stock for $125 per share, less a $450 brokerage fee.
Dec. 31 The fair value of the Lobe Company stock (the only investment that Scotsland owns) is $124 per share. The balance of the Fair value Adjustment-Trading account had a zero balance prior to adjustment.
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