Oliver Corp., the conglomerate, owns numerous investments in the shares of other companies. Assume Oliver Corp. completed

Question:

Oliver Corp., the conglomerate, owns numerous investments in the shares of other companies. Assume Oliver Corp. completed the following investment transactions:
2014 May 1 Purchased 12,000 common shares (total issued and outstanding common shares, 50,000) of Larson Corp. at a cost of $950,000. Commissions on the purchase were $20,000.
Jul. 2 Purchased 2,000 Larson Corp. common shares at a cost of $162,000. Commissions on the purchase were $1,500.
Sept. 15 Received semiannual cash of $3.20 per share on the Larson Corp. investment.
Oct. 12 Purchased 1,000 Hurley Ltd. common shares as a short-term investment, paying $33.00 per share plus brokerage commission of $1,000.
Dec. 14 Received semiannual cash of $1.50 per share on the Hurley Ltd. investment.
31 Received annual report from Larson Corp. Net income for the year was $800,000. Of this amount, Oliver Corp.'s proportion is 28 percent. The current market value for 1,000 Hurley Ltd. shares is $31,000.
2015 Feb. 6 Sold 2,000 Larson Corp. shares for cash of $166,000, less commissions of $1,550.
Required
Record the transactions in the general journal of Oliver Corp.; the company's yearend is December 31.
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...