On August 1, 2018, McLellan Ltd. purchased 1,000 Datawave Inc. common shares for $45,000 cash with the

Question:

On August 1, 2018, McLellan Ltd. purchased 1,000 Datawave Inc. common shares for $45,000 cash with the intention of trading the shares and using the fair value through profit or loss model. Datawave declared a of $1 per common share, which McLellan received on December 28, 2018. On December 31, 2018, McLellan's year end, the shares' fair value was $49,000. Prepare the journal entry to record
(a) The purchase of this investment on August 1,
(b) The receipt of the on December 28, and
(c) Any adjusting journal entry required at 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...