Answer:
Explanation:
The journal entries are shown below:
1. Loss on Investment A/c Dr $1,800         (1,200 shares × $31 - $39,600)
             To GE shares investment A/c $1,800
(Being the adjustment is recorded)
2. Retained earnings A/c Dr $37,200          (1,200 shares × $31)
            To Property Dividends Payable $37,200
(Being the entry is made on declaration date)
3. Property Dividends Payable A/c $37,200
              To GE shares investment A/c $37,200 
(Being the entry is made on payment date)