On January 2, 2014, Lester Company purchased 1,000 shares of Wakefield Company common stock for $35,000. The stock has a par value of $10 and is part of the total stock outstanding of 20,000 shares of Wakefield Company. Lester Company intends the stock to be available for sale. Total stockholders' equity of Wakefield Company on January 2, 2014 was $600,000.

Instructions

Prepare necessary journal entries in accordance with generally accepted accounting principles on the books of Lester Company for the following transactions. If no entry is required, write "none" in the space provided. (Round all calculations to the nearest cent. All parts need to be attempted for full quality pointsand please show your work.)

(a)January 2, 2014: Lester purchases the shares described above.

(b)December 31, 2014: Lester receives an $.75 per share dividend from Wakefield, and Wakefield announces a net income for 2014 of $250,000.

(c)December 31, 2014: According to The Wall Street Journal, Wakefield common is selling for $30 per share. Lester's management views this decline as being only temporary in nature. Wakefield's common is Lester's only available-for-sale security.

(d)February 15, 2015: Lester sells 500 of the shares purchased on January 2, 2008 at $36 per share.