On August 1, McLain Finance Inc. buys 3,000 Datawave common shares as a trading investment for $114,000

Question:

On August 1, McLain Finance Inc. buys 3,000 Datawave common shares as a trading investment for $114,000 cash. On October 15, McLain receives a cash dividend of $2.75 per share from Datawave. On December 1, McLain sells the shares for $120,000 cash. Prepare the journal entries to record the

(a) Purchase of the shares,

(b) Receipt of the dividend, and

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...