Soils Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1,200 shares of JB common

Question:

Soils Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 1,200 shares of JB (2% of outstanding shares) for $8,400.
July 1 Received cash dividends of $2 per share on JB .
Sept. 1 Sold 500 shares of JB for $5,400.
Dec. 1 Received cash dividends of $1 per share on JB .
Instructions
(a) Journalize the transactions.
(b) Explain how revenue and the gain (loss) on sale should be reported in the income statement.

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...