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Ex 3 Dorrett Corporation had the following transactions pertaining to temporary equity investments. a) Journalize the following transactions. 1) On February 1, 20X1, purchased
Ex 3 Dorrett Corporation had the following transactions pertaining to temporary equity investments. a) Journalize the following transactions. 1) On February 1, 20X1, purchased 600 shares of Go Games common stock (2%) for $6,000 cash ($10/sh), plus brokerage fees of $200. Date Account Name Debit 2) July 1, 20X1 received cash dividends of $1 per share on the Go Games stock. Date Account Name Debit Credit Credit 3) September 31, 20X1, sold 300 shares of the Go Games common stock when the stock was selling on the Market for $12.50/sh less $200 brokerage fees. Date Account Name Debit 4) December 1, 20X1 received cash dividends of $1 per share on the Go Games stock.. Date Account Name Debit Credit Credit b) Explain how dividend revenue and the gain (loss) on the sale of the stock should be reported in the Income Statement.
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