Chapter 9
Investments
461
AP-6B (
1
2
)
Norman Company’s investment activities from 2016 to 2017 are recorded below. Its year-end
is on December 31.
1) On January 21, 2016, Norman Company purchased 1,000 common shares of GM Holding
from Toronto Stock Exchange at $92.17 per share. The equity instrument is purchased for
the purpose of trading.
2) On June 30, 2016, Norman Company received a dividend from GM Holding of $2.30 per
share.
3) On December 31, 2016, the trading price of GM Holding went down to $91.05 per share.
4) On January 19, 2017, Norman Company sold 500 GM Holding shares at $90.05 per share.
Record journal entries of the provided investment activities for Norman Company.
Date
Account Title and Explanation
Debit
Credit
