The following information is related to the marketable security investments of Solo Company. Securities held on December 31, 2016 are described in the table below.
$\begin{array}{|l|r|r|r|r|r|}
\hline\text { Securities } &\text { No. of } & \text { Cost/Share } &\text { Total }& \text { ValuelShare }&\text { Total Market } \
&\text { Shares }&&\text { Cost }&&\text { Value }\
\hline \text { AAA } & 100 & \$ 29 & \$ 2,900 & \$ 34 & \$ 3,400 \
\hline \text { BBB } & 250 & 30 & 7,500 & 28 & 7,000 \
\hline \text { CCC } & 150 & 16 &2,400 & 20 & 3,000 \
\hline&&&\$12,800&&\$13,400\
\hline
\end{array}$
During 2017, Solo received word that dividends of $$2.50 per share were declared, but not yet received on the 150 shares of CCC stock. The per-share market value of CCC on December 31, 2017, was $18. During 2018, Solo sold 150 shares of CCC for $22 per share.
The journal entry to record the sale of 150 shares of CCC stock in 2018 would include:

Question

Quizplus · Accepted Answer

When Solo sold 150 shares of CCC stock for $22 per share, they received a total of $3,300 ($22 x 150 = $3,300). Since they originally purchased the shares for $2,700 ($18 x 150 = $2,700), they have a gain of $600 ($3,300 - $2,700 = $600). Therefore, the journal entry would include a credit to Gain on Sale of Investments for $600. There is no debit to Cash since cash is being received, and there is no debit to Unrealized Gain since any unrealized gains or losses were already recognized in previous periods.

The Following Information Is Related to the Marketable Security Investments