Diann Ltd. had the following transactions pertaining to share investments.

Feb. 1 Purchased 600 ordinary shares of Ronn (2%) for £6,200.

July 1 Received cash dividends of £1 per share on Ronn ordinary shares.

Sept. 1 Sold 300 ordinary shares of Ronn for £4,300.

Dec. 1 Received cash dividends of £1 per share on Ronn ordinary shares.

Instructions

a. Journalize the transactions.

b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

Journalize transactions for investments in shares.