Soils Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 1,200 shares of JB common stock (2% of outstanding shares) for $8,400.
July 1 Received cash dividends of $2 per share on JB common stock.
Sept. 1 Sold 500 shares of JB common stock for $5,400.
Dec. 1 Received cash dividends of $1 per share on JB common stock.
(a) Journalize the transactions.
(b) Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.