Roman Products, Inc., is a wholesaler of men's hair products. The company began operations on January 1, 2014. The following transactions relate to securities acquired by Roman Products, Inc., which has a fiscal year ending on December 31:

2014
Jan. 3	Purchased 5,600 shares of Whalen Inc. as an available-for-sale security at $36 per share, including the brokerage commission.
July 8	Received a cash dividend of $0.50 per share on the Whalen stock.
Oct. 19	Sold 2,500 shares of Whalen Inc. stock at $39 per share, less a brokerage commission of $35.
Dec. 12	A cash dividend of $0.50 per share was received on the Whalen stock.
Dec. 31	Whalen Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $33 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment.
2015
Jan. 5	Purchased an influential interest in Tasmania Inc. for $640,000 by purchasing 40,000 shares directly from the estate of the founder of Tasmania Inc. There are 100,000 shares of Tasmania Inc. stock outstanding.
July 9	Received a cash dividend of $0.60 per share on Whalen Inc. stock.
Dec. 8	Received a cash dividend of $0.60 per share plus an extra dividend of $0.10 per share on Whalen Inc. stock.
Dec. 31	Received $19,000 of cash dividends on Tasmania Inc. stock. Tasmania Inc. reported net income of $78,000 in 2015. Roman Products uses the equity method of accounting for its investment in Tasmania Inc.
Dec. 31	Whalen Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $39 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the change in fair value from $33 to $39 per share.

Required:

1. Journalize the entries to record the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Date	Amount	Debit	Credit
2014
Jan. 3	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Whalen Inc.Investments-Whalen Inc.Item 1 {C}	{C}
	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Whalen Inc.Investments-Whalen Inc.Item 3 {C}		{C}
July 8	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 5 {C}	{C}
	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 7 {C}		{C}
Oct. 19	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Whalen Inc.Investments-Whalen Inc.Item 9 {C}	{C}	{C}
	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Whalen Inc.Loss on Sale of InvestmentsItem 12 {C}	{C}	{C}
	SelectCashDividend RevenueGain on Sale of InvestmentsInvestments-Whalen Inc.Loss on Sale of InvestmentsItem 15 {C}	{C}	{C}
Dec. 12	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 18 {C}	{C}
	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 20 {C}		{C}
Dec. 31	SelectCashInvestments-Whalen Inc.Retained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 22 {C}	{C}
	SelectCashInvestments-Whalen Inc.Retained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 24 {C}		{C}
2015
Jan. 5	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Tasmania Co.Investment in Tasmania Co. StockItem 26 {C}	{C}
	SelectCashDividend RevenueGain on Sale of InvestmentsIncome of Tasmania Co.Investment in Tasmania Co. StockItem 28 {C}		{C}
July 9	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 30 {C}	{C}
	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 32 {C}		{C}
Dec. 8	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 34 {C}	{C}
	SelectCashDividend RevenueIncome of Whalen Inc.Interest RevenueInvestments-Whalen Inc.Item 36 {C}		{C}
Dec. 31-Dividends	SelectCashDividend RevenueIncome of Tasmania Co.Interest RevenueInvestment in Tasmania Co. StockItem 38 {C}	{C}
	SelectCashDividend RevenueIncome of Tasmania Co.Interest RevenueInvestment in Tasmania Co. StockItem 40 {C}		{C}
Dec. 31-Income	SelectCashDividend RevenueIncome of Tasmania Co.Interest RevenueInvestment in Tasmania Co. StockItem 42 {C}	{C}
	SelectCashDividend RevenueIncome of Tasmania Co.Interest RevenueInvestment in Tasmania Co. StockItem 44 {C}		{C}
Dec. 31-Valuation	selectCashInvestments-Whalen Inc.Retained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 46 {C}	{C}
	selectCashInvestments-Whalen Inc.Retained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 48 {C}		{C}

2. Prepare the investment-related asset and stockholders' equity balance sheet presentation for Roman Products, Inc., on December 31, 2015, assuming the Retained Earnings balance on December 31, 2015, is $467,000.

Roman Products, Inc. Balance Sheet (selected items) December 31, 2015
Current Assets:
SelectAvailable-for-Sale Investments (at Cost)Available-for-Sale Investments (at Fair Value)Unrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 50
SelectLess Unrealized Gain (Loss) on Available-for-Sale InvestmentsLess Valuation Allowance for Available-for-Sale InvestmentsPlus Unrealized Gain (Loss) on Available-for-Sale InvestmentsPlus Valuation Allowance for Available-for-Sale InvestmentsItem 52
SelectAvailable-For-Sale Investments (at Cost)Available-for-Sale Investments (at Fair Value)Unrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 54
Investments:
SelectInvestment in Tasmania Co. StockRetained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 56
Stockholders' Equity:
SelectAvailable-For-Sale Investments (at Cost)Investment in Tasmania Co. StockRetained EarningsValuation Allowance for Available-for-Sale InvestmentsItem 58
SelectAvailable-for-Sale Investments (at Fair Market Value)Investment in Tasmania Co. StockUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsItem 60