Assume that Kampus Corporation (from Question 1 on the previous page) sold 1,000 shares of its Logan, Inc. stock for $100 per share on January 15 of the following year.

Required: Prepare the journal entry to record the sale of these shares.

Q1 :

Kampus Corporation had the following eight investment transactions or events:

Jan 1 Purchased Argon Co. bonds for $10,000 cash. [Purchase is considered an investment in available-for-sale (AFS) debt securities.]

Jan 3 Purchased 1,200 shares of Elmer, Inc. for $36,000 cash. [Purchase is considered an investment in equity securities (stocks) with insignificant influence.]

Mar 31 Received cash dividend of $0.25 per share from Elmer, Inc.

Jun 1 Purchased 4,000 shares of Logan, Inc. for $50 per share. These shares represent a 40% ownership in Logan, Inc.

Sep 30 Received cash dividend of $5 per share from Logan, Inc.

Dec 31 Logan, Inc. reported net income of $200,000 for the year.

Dec 31 As of December 31, the Argon Co. bond had a fair (market) value of $12,500.

Dec 31 As of December 31, the Elmer, Inc. stock had a fair (market) value of $25 per share.