Problem D-1A (Algo) Account for investments using the fair value method (LO D-2) Barry, Hank, and Babe form a company named Long Ball Investments, hoping to find that elusive home run stock. A new clothing company by the name of Major League Apparel has caught their eye. Major League Apparel has two classes of stock authorized: 5%, $10 par preferred and $1 par value common. Long Ball Investments has the following transactions during the year. None of the investments are large enough to exert a significant influence. January 2 Purchase 2,000 shares of Major League common stock for $62 per share. February 14 Purchase 400 shares of Major League preferred stock for $11.20 per share. May 15 Sell 400 shares of Major League's common stock for $54 per share. December 30 Receive a cash dividend on Major League's common stock of $0.42 per share and preferred stock of $0.52 per share. December 31 The fair values of the common and preferred shares are $64.20 and $12.40, respectively. Required: 1. Record each of these investment transactions. (Hint: Preferred stock transactions are recorded like common stock transactions, but preferred stock has no voting rights and therefore ownership provides no influence.) 2. Calculate the balance in the Investments account as of December 31. Required 1 Required 2 Record each of these investment transactions. (Hint: Preferred stock transactions are recorded like common stock transactions, but preferred stock has no voting rights and therefore ownership provides no influence.) (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Date January 02 Common Stock: Cash 2 February 14 Preferred Stock Cash 3 May 15 Cash Common Stock 4 December 30 Cash Dividend Revenue 5 December 31 Common Stock General Journal. Unrealized Holding Gain-Net Income 6 December 31 Preferred Stock Unrealized Holding Gain-Net Income Requir Required 2 > Debit 124,000 Credit 124,000 4,480 4,480 21,600 * 21,600 00 00 00 200x 200 10,800 10,800 400x 400 3 * Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the balance in the Investments account as of December 31. Investments account $ 118,160