On December 31, 2006. Carlin Associates owned the following securities, held as longterm investments.

On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2007, the following transactions occurred.
July 1 Received $1 per share semiannual cash dividend on Burns Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on Ace Co. common stock.
Sept. 1 Sold 2,000 shares of Burns Co. common stock for cash at $7 per share, less brokerage fees of $300.
Oct. 1 Sold 600 shares of Ace Co. common stock for cash at $28 per share, less brokerage fees of $600.
Nov. 1 Received $1 per share cash dividend on Cruz Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Ace Co. common stock.
31 Received $1 per share semiannual cash dividend on Burns Co. common stock.
At December 31. the fair values per share of the common stocks were: Ace Co. $24. Burns Co.
$6, and Cruz Co. $19.
Instructions

(a) Journalize the 2007 transactions and post to the account Stock Investments. (Use the T-account form.)

(b) Prepare the adjusting entry at December 31. 2007. to show the securities at fair value. The stock should be classified as available-for-sale securities.

(c) Show the balance sheet presentation of the investments at December 31,2007. At this date.
Carlin Associates has common stock of $2.(XK).(KH) and retained earnings of $1,200,000.

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Common Stock Shares Cost Ace Co. 2,000 $50,000 Burns Co. 6,000 36,000 Cruz Co. 1,200 24.000