2016 July 1 - Purchased 2,000 shares of Cook, Inc.s common stock for $240,500 cash. The investment is noninfluential and noncontrolling and is classified as a trading security. Oct. 1 - Purchased 1,000 shares of Fox, Inc.s common stock for $70,000 cash and 5,000 shares of Dent, Inc.s common stock for $187,500 cash. These investments are noninfluential and noncontrolling and are classified as availableforsale securities. (Note: Use two separate investment accounts.) Nov. 9 - Received a cash dividend of 70 cents per share on the Dent stock. Dec. 31 - Made an adjusting entry to record the current fair value of the Cook stock. At December31, the stock has a market value of $126 per share. Dec. 31 - Made an adjusting entry to record the current fair values of the Fox and Dent stocks. AtDecember 31, the Fox stock has a market value of $66 per share and the Dent stock has a market value of $35 per share. (Note: Make one adjusting entry for the portfolio of availableforsale stocks.)

2017 Feb. 1 - Sold the Cook stock for $130 per share. Dec. 31 - Made an adjusting entry to record the current fair values of Fox and Dent stocks. AtDecember 31, the pershare market values are Fox, $63, and Dent, $30. Note: Be sure to allow for the adjustment made at December 31.)

Prepare the journal entries to record these transactions and adjustments.

General Journal
Date	Description	Debit	Credit
7/1/16	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To record purchase of Cook stock.
10/1/16	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	Stock investment-available for sale (Dent)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To record purchase of Fox and Dent stock.
11/9/16	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To record receipt of dividend on Dent stock.
12/31/16	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To adjust trading equity securities to year-end fair value.
12/31/16	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To adjust portfolio of available for sale equity securities to year-end fair value.
2/1/17	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	Stock investment-trading (Cook)	Answer	Answer
	To record sale of Cook stock.
12/31/17	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	AnswerCashDividend incomeFair value adjustment to stock investmentsGain on sale of investmentsLoss on sale of investmentsStock investment-available for sale (Fox)Stock investment-available for sale (Dent)Stock investment-trading (Cook)Unrealized gain on investments (income)Unrealized gain/loss on investments (equity)Unrealized loss on investments (income)	Answer	Answer
	To adjust portfolio of available for sale equity securities to year-end fair value.