On January 3, 2022, Castle Corporation purchased the following equity securities as an investment:

Company Number of Shares Cost of Share Total Cost

A 400 $20 $8,000

B 2,000 12 24,000

C 800 22 17,600

These securities are classified as available for sale.

Required:

a. Prepare the journal entry to record the acquisition of the stock.

b. On June 30, 2022, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt.

c. On December 31, 2022, the market values per share were:

Company Market value

A $22

B 12

C 20

Prepare any journal entry or entries necessary to record these changes in market value.

d. On March 14, 2023, Castle sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.