Diann Company had the following transactions pertaining to stock investments.
|
Feb. 1 |
Purchased 600 shares of Ronn common stock (2%) for $6,000 cash, plus brokerage fees of $200. |
|
July 1 |
Received cash dividends of $1 per share on Ronn common stock. |
|
Sept. 1 |
Sold 300 shares of Ronn common stock for $4,400, less brokerage fees of $100. |
|
Dec. 1 |
Received cash dividends of $1 per share on Ronn 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.