Gator Shoes, Inc , manufactures a line of stylish waterproof footwear The following transactions relate to investments in common stock March 1 Purchases 3,000 shares of Power Drive Corporations common stock for $ 62 per share July 1 Receives a cash dividend of $ 1 25 per share October 1 Sells 750 s...

Requirement 1 March 1 Debit Credit Investments 3000 shares 62 186000 Cas ...

Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in

Question:

Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in .
March 1 Purchases 3,000 shares of Power Drive Corporation’s for $ 62 per share.
July 1 Receives a cash of $ 1.25 per share.
October 1 Sells 750 shares of Power Drive Corporation’s for $ 70 per share.
December 31 The fair value of Power Drive Corporation’s is $ 75 per share.

Required:
1. Record each of these transactions, including an adjustment on December 31 for the investment’s fair value, if appropriate.
2. Calculate the balance of the Investments account on December 31.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...