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During the year ended December 31, 2021, and in the following months of January and February 2022, Oak Ridge Inc. had the following transactions pertaining
During the year ended December 31, 2021, and in the following months of January and February 2022, Oak Ridge Inc. had the following transactions pertaining to its trading investments: Apr. 1 Purchased 2,000 Starr Corporation $5, preferred shares for $208,000 cash. July 1 Received quarterly cash dividend. 2 Oct. 1 Nov. 22 Sold 500 Starr shares for $57,500 cash. Received quarterly cash dividend. Starr declared the quarterly dividend on November 22, to preferred shareholders of record on December 15, payable on January 1. Starr's shares were trading at $116 per share. Due to an urgent need for cash, 700 Starr Corporation shares were sold despite a drop in the share price to $88 per share. Dec. 31 Jan. 31 Feb. 15 Oak Ridge sold an additional 500 Starr shares after the market recovered to $118 per share. Record the above transactions, using the fair value through profit or loss model. Prepare any required adjusting entries at December 31. (List al debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit CI Apr 1, 2021 Long-Term Investments 208,000 Cash July 1, 2021 Cash 2500 Dividend Income July 2.2021 Cash 57500 Realized Gain on Trading Investments Long-Term investments Oct. 1, 2021
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