On January 1, 2018, Bark Company invests $10,000 in Roots, Inc. stock. Roots pays Bark a $400

Question:

On January 1, 2018, Bark Company invests $10,000 in Roots, Inc. stock. Roots pays Bark a $400 on August 1, 2018. Bark sells the Roots's stock on August 31, 2018, for $10,450. Assume the investment is categorized as a short-term equity investment and Bark Company does not have significant influence over Roots, Inc.
Requirements
1. Journalize the transactions for Bark's investment in Roots's stock.
2. What was the net effect of the investment on Bark's net income for the year ended December 31, 2018?
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...