Mr. T's Fashions, once a direct competitor to Italian Stallion's clothing line, has formed a...
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Mr. T's Fashions, once a direct competitor to Italian Stallion's clothing line, has formed a friendship in recent years leading to a small investment (less than 5\%) by Mr. T in the common stock of Italian Stallion. Mr. T's engages in the following transactions relating to its investment. February 1 Purchases 100 shares of Italian Stallion common stock for $14.20 per share. June 15 Sells 40 shares of Italian Stallion stock for $10.40 per share. October 31 Receives a cash dividend of $0.35 per share. December 31 The fair value of Italian Stallion's stock is $8.40 per share. Required: 1. Record each of these transactions, including an adjustment on December 31 for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2. Calculate the balance of the Investments account on December 31
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