Soylent Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1,200 shares of BJ common
Question:
Feb. 1 Purchased 1,200 shares of BJ common stock (2% of outstanding shares) for $8,400.
July 1 Received cash dividends of $2 per share on BJ common stock.
Sept. 1 Sold 500 shares of BJ common stock for $5,400.
Dec. 1 Received cash dividends of $1 per share on BJ common stock.
Instructions
(a) Journalize the transactions.
(b) Explain how dividend 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...
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a Feb 1 Stock Investments 8400 Cash 8400 July 1 Cash 1200 X 2 2400 Dividend Reve...View the full answer
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Related Book For 
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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