Satazar Company had the following transactions pertaining to stock investments.

Feb. 1 Purchased 800 shares of Hippo common stock (2%) for $8,000 cash, plus brokerage transactions.
fees of $200.
July 1Received cash dividends of $1 per share on Hippo common stock.
Sept. 1Sold 300 shares of Hippo common stock for $4,400. less brokerage fees of $100.
Dec. 1 Received cash dividends of $1 per share on Hippo 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.