Mythical Corporation purchased $15,000 of common stock in Specialty Corporation on September 1, 2000. This investment was

Question:

Mythical Corporation purchased $15,000 of common stock in Specialty Corporation on September 1, 2000. This investment was properly classified as a trading security by Mythical. At December 31, 2000, the end of Mythical's fiscal year, the investment has declined in value to $14,500. On December 1, 2001, Mythical received $1,000 in dividends from Specialty. By December 31, 2001, the investment had increased in value to $16,000. On February 2, 2002, the investment was sold for $16,500.

Required:

Prepare the journal entries for each of the transactions.

Common Stock
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