Question

Here is Blossom Company’s portfolio of long-term stock investments at December 31, 2018, the end of its first year of operations. Cost 1,350 shares of Batone Inc. common stock $71,010 1,100 shares of Mendez Corporation common stock 73,700 760 shares of P. Tillman Corporation preferred stock 32,680 On December 31, the total cost of the portfolio equaled the total fair value. Blossom had the following transactions related to the securities during 2019. Jan. 20 Sold 1,350 shares of Batone Inc. common stock at $56 per share. 28 Purchased 410 shares of $10 par value common stock of P. Wahl Corporation at $85 per share. 30 Received a cash dividend of $1.18 per share on Mendez Corporation common stock. Feb. 8 Received cash dividends of $0.40 per share on P. Tillman Corporation preferred stock. 18 Sold all 760 shares of P. Tillman preferred stock at $33 per share. July 30 Received a cash dividend of $1.00 per share on Mendez Corporation common stock. Sept. 6 Purchased an additional 650 shares of the $10 par value common stock of P. Wahl Corporation at $87 per share. Dec. 1 Received a cash dividend of $1.50 per share on P. Wahl Corporation common stock. At December 31, 2019, the fair values of the securities were: Mendez Corporation common stock $62 per share P. Wahl Corporation common stock $84 per share Blossom uses separate account titles for each investment, such as Investment in Mendez Corporation Common Stock.

Your answer is partially correct. Try again. Prepare journal entries to record the transactions.

Answer 1

Journal Entries:-
Date	Account Titles	Debit	Credit
Jan.20	Cash (1,350 x 56 )	75,600
	Investment in Batone Inc.		71,010
	Gain on sale of Investment		4,590
Jan.28	Investment in P.Wahl Corporation	34,850
	Cash		34,850
	( 410 x 85 )
Jan.30	Cash	1,298
	Dividend Revenue		1,298
	(1,100 x 1.18 )
Feb.8	Cash	304
	Dividend Revenue		304
	(760 x 0.40 )
Feb.18	Cash ( 760 x 33 )	25,080
	Loss on sale of Investment	7,600
	Investment in P.Tillman Corporation		32,680
Jul.30	Cash	1,100
	Dividend Revenue		1,100
	(1,100 x 1 )
Sept.6	Investment in P.Wahl Corporation	56,550
	Cash		56,550
	( 650 x 87 )
Dec.1	Cash	1,590
	Dividend Revenue		1,590
	(410 + 650 ) x 1.50
Dec.31	Unrealized loss on Investment	5,500
	Investment in Mendez Corporation		5,500
	( 73,700 - (1,100 x 62) )
Dec.31	Unrealized loss on Investment	2,360
	Investment in P.Wahl Corporation		2,360
	( 91,400 - (1,060 x 84) )