Dossett Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Goetz

Question:

Dossett Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200.

July 1 Received cash dividends of $1 per share on Goetz common stock.

Sept. 1 Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100.

Dec. 1 Received cash dividends of $1 per share on Goetz 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...