Question: On August 1, 2014, Planting Haven invests the $ 15,000 (refer to Short Exercise S10-1) in Seeds, Inc. stock. Seeds pays Planting a $ 500

On August 1, 2014, Planting Haven invests the $ 15,000 (refer to Short Exercise S10-1) in Seeds, Inc. stock. Seeds pays Planting a $ 500 dividend on October 1, 2014. Planting sells the Seeds’ stock on October 31, 2014, for $ 15,100. Assume the investment is categorized as a trading investment.

Requirements

1. Journalize the transactions for Planting’s investment in Seeds’ stock.

2. What was the net effect of the investment on Planting’s net income for the year ended December 31, 2014?

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