Journalize the following long-term, equity investment transactions of Johnson Department Stores: a. Purchased 420 shares of Gates

Question:

Journalize the following long-term, equity investment transactions of Johnson Department Stores:

a. Purchased 420 shares of Gates Fine Foods common stock at $35 per share (less than 10% of Gates’ outstanding stock), with the intent of holding the stock for the indefinite future.

b. Received a cash dividend of $1.90 per share on the Gates investment.

c. At year-end, adjusted the investment account to fair value of $37 per share.

d. Sold the Gates stock for $24 per share.

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...

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