Question
Diann Ltd. had the following transactions pertaining to share investments. Feb. 1 Purchased 600 ordinary shares of Ronn (2%) for 6,200. July 1 Received cash
Diann Ltd. had the following transactions pertaining to share investments.
| Feb. | 1 | Purchased 600 ordinary shares of Ronn (2%) for 6,200. |
| July | 1 | Received cash dividends of 1 per share on Ronn ordinary shares. |
| Sept. | 1 | Sold 300 ordinary shares of Ronn for 4,300. |
| Dec. | 1 | Received cash dividends of 1 per share on Ronn ordinary shares. |
Instructions:
a. Journalize the transactions.
b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
