On September 12, 4,000 shares of Aspen Company were acquired at a price of $50 per share

Question:

On September 12, 4,000 shares of Aspen Company were acquired at a price of $50 per share plus a $400 brokerage commission. On October 15, a $0.60-per-share dividend was received on the Aspen stock. On November 10, 3,000 shares of the Aspen stock were sold for $40 per share less a $200 brokerage commission. Journalize the entries to record the original purchase, the dividend, and the sale under the fair value method.

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...