During December of the current year, James Company acquired some of the 49,800 outstanding shares of the common stock, par $16, of Andrew Corporation as available-for-sale investments. The accounting period for both companies ends December 31.

During December of the current year, James Company acquired some of the 49,800 outstanding shares of the common stock, par $16, of Andrew Corporation as available-for-sale investments. The accounting period for both companies ends December 31. 

Dec 2 Purchased 6,390 shares of Andrew common stock at $30 per share.

Dec 15 Andrew Corporation declared and paid a cash dividend of $4 per share.

Dec 31 Determined the current market price of Andrew stock to be $26 per share.

Prepare the journal entries for each of the following transactions that occurred during the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation:

December 2:

(6,390 shares × $30 per share); 12.8% ownership of voting stock = $191,700

December 15:

(6,390 shares × $4 = $25,560)

December 31:

Year	Fair Value	−	Book Value before Adjustment	=	Amount for Adjusting Entry
Current	$166,140	−	$191,700	=	− $25,560
	(6,390 × $26)				Unrealized loss