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Part II Securities Investments On December 31,2022, Banana Republic sold all of...

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Accounting

Part II Securities Investments
On December 31,2022, Banana Republic sold all of its Gap common stock receiving $300,000 in cash. On November 20,2022 receives a cash dividend of $10,000 from Gap. On September 30,2023, Banana Republic purchased the common stock of Gap for $340,000. The investment represents less than 20% interest in Gap. On December 1 the fair value of the investment was $310,000. Banana has $40,000 in treasury stock, that will be used for employee bonuses. They expected to invest $100,000 in preferred stock shares in December. The company has done very well with its investment portfolio, obtaining a return of 20%.
A Prepare the required journal entries
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