Eastwind Corporation purchased 400 common shares of Ditch Inc. for $l3,200 on February 21. Eastwind paid a

Question:

Eastwind purchased 400 common shares of Ditch Inc. for $l3,200 on February 21. Eastwind paid a 1% commission on the share purchase and, because the shares were not publicly traded, decided to account for them using the costlan10rtized cost method. On June 30, Ditch declared and paid a cash of $1.50 per share. Prepare Eastwind journal entries to record
(a) The purchase of the investment,
(b) The dividends received, and
(c) The sale of the Ditch Inc. shares in early January the following year for $ 15,100 less a 1% commission paid on the sale.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...