In December 2012, the treasurer of Toth Company concluded that the company had excess cash on hand

Question:

In December 2012, the treasurer of Toth Company concluded that the company had excess cash on hand and decided to invest in Soren Corporation stock. Toth intends to hold the stock for a period of 6 to 12 months and classifies the security as trading. The following transactions took place:

Jan. 1 Purchased 8,500 shares of Soren stock for $187,000.

Apr. 24 Received a cash dividend of $1.20 per share on the Soren stock.

May 5 Sold 2,500 shares of the Soren stock at $25 per share for cash.

July 21 Received a cash dividend of $1.30 per share on the Soren stock.

Aug. 9 Sold the balance of the Soren stock at $19 per share for cash.

Required:

Prepare the appropriate journal entries to record each of these transactions.

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...