On January 2, Lewis Company purchased 5,000 shares of Adams Company (representing 20% of the total outstanding shares) for $45 per share plus a $40 commission. Lewis Company is not able to exercise significant influence over the policies of Adams Company. The following events took place during the year:
| December 15 |
Lewis Company received a dividend of $3.30 per share. |
| December 30 |
Adams Company announced that its earnings for the year were $261,000. |
| December 31 |
Lewis Company sold 1,000 shares of Adams Company stock for $46 per share less a $40 commission. |
Required:
Prepare the journal entries for Lewis Company (if necessary) relating to the above transactions, including the purchase of the Adams shares.