On January 2, 2007, Tomlin Company purchased 1,000 shares of Joel Company common stock for $35,000. The

Question:

On January 2, 2007, Tomlin Company purchased 1,000 shares of Joel Company for $35,000. The stock has a of $10 and is part of the total stock outstanding of 20,000 shares of Joel Company. Tomlin Company intends the stock to be available for sale. Total stockholders' equity of Joel Company on January 2, 2007 was $600,000.

Instructions
Prepare necessary journal entries in accordance with generally accepted accounting principles on the books of Tomlin Company for the following transactions.  If no entry is required, write "none" in the space provided.  (Round all calculations to the nearest cent.)
a) January 2, 2007:  Tomlin purchases the shares described above.
b) December 31, 2007: Tomlin receives an $.75 per share from Joel, and Joel announces a net income for 2007 of $250,000.
c) December 31, 2007:  According to The Wall Street Journal, Joel common is selling for $30 per share. Tomlin's management views this decline as being only temporary in nature. Joel's common is Tomlin's only available-for-sale security.
d) February 15, 2008:  Tomlin sells 500 of the shares purchased on January 2, 2008 at $36 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...