Feb.1Purchased 1,200 shares of BJ common stock (2% of outstanding shares) for $8,400.July1Received cash dividends of $2 per share on BJ common stock.Sept.1Sold 500 shares of BJ common stock for $5,400.Dec.1Received cash dividends of $1 per share on BJ common stock.

Instructions

(a) Journalize the transactions.

(b) Explain how dividend revenue and the gain (loss) on sale should be reported in the income statemen