Greek Products Ltd. is a wholesaler of women's clothing. The company began opera- tions on January 1, 2015. The following transactions relate to securities acquired by Greek Products Ltd., which has a fiscal year ending on December 31:
2015
Jan. 3. Purchased 5,000 shares of the 200,000 outstanding shares of Crossley Ltd. as an available-for-sale investment at $51 per share, plus a brokerage commission of $800.
Jul. 6. Crossley Ltd. shares split 2 for 1 and paid a cash dividend of $0.75 per new share, paid after the split.
Oct. 14. Sold 1,000 shares of Crossley Ltd. at $27 per share, less a brokerage commission of $300.
Dec. 9. Received a cash dividend of $0.75 per share.
31. The market value per share for Crossley Ltd. is $22 per share. Crossley Ltd. is classified as an available-for-sale investment and is adjusted to fair value.
2016
Jan. 5. Purchased a strategic interest in Eastdale Inc. for $780,000 by purchasing 75,000 shares directly from the estate of the founder of Eastdale Inc. There are 180,000 shares of Eastdale Inc. outstanding.
Jul. 8. Received a cash dividend of $0.90 per Crossley Ltd. share.
Dec. 8. Received a cash dividend of $0.90 per Crossley Ltd. share.
31. Received $20,000 of cash dividends on Eastdale Inc. shares. Eastdale Inc. reported net income of $94,000 in 2016. Greek Products uses the equity method of accounting for its investment in Eastdale Inc.
31. The market value per share for Crossley Ltd. is $28 per share.
Instructions
1. Journalize the entries to record the preceding share transactions. Greek Products Ltd. expenses brokerage fees. Round answers to the nearest dollar.
2. Prepare the investment-related asset and shareholders' equity statement of financial position disclosures for Greek Products Ltd. on December 31, 2016, assuming the Retained Earnings balance on December 31, 2016, is $785,000.