Acc291 Principles of Accounting: Week 4 Exercise 3 Wallace Company had the following transactions

Acc291 Principles of Accounting
Week 4

EXERCISE 3
Wallace Company had the following transactions pertaining to stock investments.
Feb. 1 Purchased 800 shares of Betz common stock (2%) for $8,000 cash, plus Brokerage fees of $200.
July 1 Received cash dividends of $1 per share on Betz common stock.
Sept. 1 Sold 400 shares of Betz common stock for $4,400, less brokerage fees of $100.
Dec. 1 Received cash dividends of $1 per share on Betz 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.
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