Question
A Co. Inc. engaged in the following investment transactions. Feb. 17, 2021 Purchased 1000 shares of M Company common stock for $20 per share. A
A Co. Inc. engaged in the following investment transactions. Feb. 17, 2021 Purchased 1000 shares of M Company common stock for $20 per share. A does not have significant influence over M Company. April 1, 2021 Bought 40,000 of the 100,000 outstanding shares of B Company for $400,000. A has significant influence over B. June 25, 2021 Received a $1.20 per share dividend on M Company stock. Dec. 31, 2021 B Company reported profits of $40,000 and paid Dividends of $10,000 for the nine-months ended Dec. 31. Dec. 31, 2021 M Co. shares are selling for $25. B shares are selling for $12. Jan. 5, 2022 Sold the investment in M Company for $26 per share. Sold the investment in B Company for $11 per share.
Required: Prepare the appropriate journal entries to record the transactions of A Co.
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