(Equity Investments—Available for Sale) Big Brother Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2006.

During 2006, the following transactions took place.
1. On March 1, Josie Company paid a $2 per share dividend.
2. On April 30, Big Brother Holdings, Inc. sold 300 shares of David Company for $10 per share.
3. On May 15, Big Brother Holdings, Inc. purchased 50 more shares of Earl Co. stock at $16 per share.
4. At December 31, 2006, the stocks had the following price per share values: Earl $17, Josie $19, and David $8.
During 2007, the following transactions took place.
5. On February 1, Big Brother Holdings, Inc. sold the remaining David shares for $7 per share.
6. On March 1, Josie Company paid a $2 per share dividend.
7. On December 21, Earl Company declared a cash dividend of $3 per share to be paid in the next month.
8. At December 31, 2007, the stocks had the following price per shares values: Earl $19 and Josie $21.
Instructions

(a) Prepare journal entries for each of the above transactions.

(b) Prepare a partial balance sheet showing the Investments account at December 31, 2006 and 2007.

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Earl Company Josie Company David Company Available-for sale securities @ cost Securities fair value adjustment-Available-for-sale Available-for-sale securities fair value 1,000 shares @ $15 each 900 shares $20 each. 500 shares @ $9 each $15,000 18,000 4,500 37,500 (7,500) $30,000