Post the journal entries from to their respective t-accounts

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Question - 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 -

1. Prepare journal entries to record these transactions.

2. Post the journal entries from a to their respective T-accounts.

3. Record each of the transactions in the financial statement effects template.

Reference no: EM133062396

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