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Instructions: a. Journalize the transactions. b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

Instructions: a. Journalize the transactions. b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Diann Ltd. had the following transactions pertaining to share investments.

Feb.
1
 Purchased 600 ordinary shares of Ronn (2%) for $6,200.
July
1
 Received cash dividends of $1 per share on Ronn ordinary shares.
Sept.
1
 Sold 300 ordinary shares of Ronn for $4,300.
Dec.
1
 Received cash dividends of $1 per share on Ronn ordinary shares.

Instructions:

a. Journalize the transactions.

b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

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