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Question
Journalize the following selected transactions of Masterson Co.:
| Aug. 1 | Purchased 600 shares of the 100,000 shares outstanding of $10 par common shares of Dankin Corporation for $5,100. | |
| 1 | Purchased 3,500 of the 10,000 outstanding common shares of Ramon Co. for $45,700. The investment was accounted for by the equity method. | |
| Sept. 1 | Received a cash dividend of $1 per share on the Dankin Corporation stock acquired on August 1. | |
| 1 | Received a cash dividend of $2 per share on the Ramon Co. stock acquired on August 1. | |
| Dec. 31 | Sold 100 shares of the Dankin Corporation shares acquired on August 1 for $2,100. | |
| 31 | Dankin Corporation reported net income of $30,000 and Ramon Company’s reported net income was $50,000. |
Answer
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