Exercise D-4 Record equity investments using the fair value method (LO D-2)

Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021.

March		1		Purchases 3,000 shares (10%) of Power Drive Corporations common stock for $62 per share.
July		1		Receives a cash dividend of $1.25 per share.
December		31		The fair value of Power Drive Corporations common stock is $75 per share.

On February 1, 2022, Gator Shoes sells 1,000 shares of Power Drive Corporations common stock for $70 per share. Required: 1. Record each of these transactions in 2021, including an adjustment on December 31 for the investments fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

W Answer is complete but not enurery correct. No Date General Journal Credit Debit 186,000 March 01 Investments Cash 186,000 July 01 3,750 Cash Dividend Revenue 3,750 3 December 31 29,250 X Investments Unrealized Holding Gain-Other Comprehensive Income 29,250 2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal E in the first account field.) Answer is not complete. No Date General Journal Credit Debit 70,000 1 February 01 Cash Gain Investments 70,000