Question: In January 2010, Solitron, Inc., determined that it had excess cash on hand and decided to invest in Horner Company stock. Solitron intends to hold

In January 2010, Solitron, Inc., determined that it had excess cash on hand and decided to invest in Horner Company stock. Solitron intends to hold the stock for a period of three to five years, thereby making the investment an available-for-sale security. The following transactions took place in 2010, 2011, and 2012:

2010

Jan. 17 Purchased 2,750 shares of Horner stock for $89,500.

May 10 Received a cash dividend of $1.30 per share on Horner stock.

Dec. 31 The market value of the Horner stock was $30 per share.

2011

May 22 Purchased 750 shares of Horner stock at $40 per share.

July 18 Received a cash dividend of $0.90 per share on the Horner stock.

Dec. 31 The market value of the Horner stock was $42 per share.

2012

June 7 Received a cash dividend of $1 per share on the Horner stock.

Oct. 5 Sold the Horner stock at $27 per share for cash.

Dec.31 The market value of the Horner stock was $25 per share.

Prepare the journal entries required to record each of these events.

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2010 Jan 17 Investment in AvailableforSale Securities Horner Company 89500 Cash 89500 Purchased 2750 shares May 10 Cash 3575 Dividend Revenue 3575 Rec... View full answer

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