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

Question:

Prepare journal entries to record the following transactions involving the short-term securities investments of Smart Co., all of which occurred during year 2011.
a. On March 22, purchased 700 shares of FIX Company stock at $30 per share plus a $150 brokerage fee. These shares are categorized as trading securities.
b. On September 1, received a $1.00 per share cash on the FIX Company stock purchased in transaction a.
c. On October 8, sold 350 shares of FIX Co. stock for $40 per share, less a $140 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...