Gold Knight Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2014.

Perr Company 2,500 shares @ $26 each $ 65,000

Ranier Company 6,000 shares @ $12 each 72,000

Quail Company 1,200 shares @ $15 each 18,000

Equity investments (available-for-sale) @ cost 155,000

Fair value adjustment (available-for-sale) 11,500

Equity investments (available-for-sale) @ fair value $166,500

During 2014, the following transactions took place.

1.

On June 15, Quail Company paid a $1 per share dividend.

2.

On July 3, Gold Knight Holdings, Inc. sold 4,000 shares of Ranier Company for $13 per share.

3.

On September 20, Gold Knight Holdings, Inc. purchased 500 more shares of Perr Co. stock at $28 per

share.

4.

At December 31, 2014, the stocks had the following price per share values: Perr $29, Ranier $11, and

Quail $14.

During 2015, the following transactions took place.

5.

On March 1, Gold Knight Holdings, Inc. sold the remaining Ranier shares for $11 per share.

6.

On April 18, Quail Company paid a $1.25 per share dividend.

7.

On December 13, Perr Company declared a cash dividend of $1.50 per share to be paid in the next month.

8.

At December 31, 2015, the stocks had the following price per shares values: Perr $30 and Quail $17.

Instructions

(a)

Prepare journal entries for each of the above transactions.

(b)

Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31,

2014 and 2015