In June 2012, Hatch Company had no investment securities but had excess cash that would not be

Question:

In June 2012, Hatch Company had no investment securities but had excess cash that would not be needed for nine months. Management decided to use this money to purchase trading securities as a short-term investment. The following transactions relate to the investments:

July 16 Purchased 4,000 shares of Eli Corporation stock. The price paid, including brokerage fees, was $62,400.

Sept. 23 Received a cash dividend of $1.25 per share on the Eli stock.

28 Sold 2,000 shares of Eli stock at $16 per share. Paid a selling commission of $250.

Dec. 31 The market value of Eli’s stock was $16.35 per share.

Given these data, prepare the journal entries to account for Hatch’s investment in Eli stock.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...