On March 2, 2007 the Dawson Corporation acquired 5,000 common shares, representing a 1 interest in the Foreman Corporation, for $60,000 On May 1, 2007 Foreman issued a 20 stock dividend, and on December 31, 2007 the market value was $10 per share On February 1, 2008 Dawson sold 1,500 shares for $12...

2007 Mar 2 Investment in AvailableforSale Securities 60000 Cash 60000 May 1 Memorandum entry ...

On March 2, 2007 the Dawson Corporation acquired 5,000 common shares, representing a 1% interest in the

Question:

On March 2, 2007 the Dawson acquired 5,000 common shares, representing a 1% interest in the Foreman for $60,000. On May 1, 2007 Foreman issued a 20% stock dividend, and on December 31, 2007 the market value was $10 per share. On February 1, 2008 Dawson sold 1,500 shares for $12 per share.

Required
Prepare journal entries for Dawson to record the acquisition, stock dividend, and sale of the shares.

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...