Question 3 Partially correct Mark 86.00 out of 98.00 P Flag question Edit question Reporting of and Analyzing Financial Effects of Passive Equity Securities Guay Company had the following transactions and adjustment related to a passive equity investment. 2019 Nov. 15 Purchased 5,000 shares of Core, Inc.'s common stock at $16 per share plus a brokerage commission of $900. Guay Company expects to sell the stock in the near future. Dec. 22 Received a cash dividend of $1.25 per share of common stock from Core. Dec. 31 Made the adjusting entry to reflect year-end fair value of the stock investment in Core. The year-end market price of the Core common stock is $17.50 per share. 2020 Jan. 20 Sold all 5,000 shares of the Core common stock for $86,400. Required a. Prepare journal entries to record these transactions. General Journal Description Debit Credit Date 2019 80,900 0 11/15 Investment in Core, Inc. Cash O 80,900 0 12/22 Cash 6,250 Dividend Income 0 6,250 12/31 Investment in Core, Inc. 6,600 0 Unrealized Gain 0 6,600 2020 1/20 X 0 Loss on Sale of Investmen Loss on Sale of Investment Investment in Core, Inc 86,400 1,100 0 0 87,500 Loss on Sale of Investment (E) 11/15/19 0 0 b. Post the journal entries from a to their respective T-accounts. Cash (A) Investment in Core, Inc. (A) 11/15/19 0 80,900 11/15/19 80,900 86,400 x 12/22/19 6,250 1,100 X 12/22/19 0 0 12/31/19 87,500 x 11,750 X 12/31/19 66,000 x 0 1/20/20 OX 0 1/20/20 0 1,100 x 12/22/19 0 0 12/31/19 0 0 1/20/20 1,100 1,100 X Unrealized Gain (R) 11/15/19 0 0 12/22/19 0 0 6,600 X 6,600 12/31/19 1/20/20 0 0 Dividend Income (R) 11/15/19 0 0 6,250 x 12/22/19 12/31/19 6,250 0 0 1/20/20 0 0