Mystic Lakes Food Company began investing in equity securities for the first time in 2020. During 2020, the company engaged in the following transactions involving equity securities. Assume that the stock of Thayers International and Bayhe Enterprises is considered marketable and that ownership is less than 20 percent of the equity. Prepare journal entries to record these transactions.
1. Purchased 10,000 shares of Thayers International for $26 per share.
2. Purchased 25,000 shares of Bayhe Enterprises for $35 per share.
3. Thayers International declared and paid a $2-per-share dividend.
4. Sold 4,500 shares of Bayhe Enterprises for $30 per share.
5. Sold 8,000 shares of Thayers International for $32 per share.