Prepare journal entries to record the following transactions involving the short- term securities investments of Duke Co.,

Question:

Prepare journal entries to record the following transactions involving the short- term securities investments of Duke Co., all of which occurred during year 2013.
a. On March 22, purchased 1,000 shares of RIP Company stock at $ 10 per share plus a $80 brokerage fee. These shares are categorized as trading securities.
b. On September 1, received a $ 1.00 per share cash on the RIP Company stock purchased in transaction a.
c. On October 8, sold 500 shares of RIP Co. stock for $15 per share, less a $50 brokerage fee.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...