Try another version of this question Question 1
On March 1, 2020, Shortsleeve Corp. invests $22,350 in the stock of Weiner, Inc.
Weiner, Inc. pays Shortsleeve Corp. a dividend on August 1, 2020 for $10,000.
Shortsleeve Corp. sells Weiner, Inc. stock on August 31, 2020, for $23,100. The Investment is categorized as a trading investment.
Date Description Debit Credit March 1 March 1 August 1 August 1 August 31 August 31 August 31 Date Description Debit Credit March 1 Short-Term Investments-Trading 22,350 March 1 Cash 22,350 August 1 Cash 10,000 August 1 Dividend Revenue 10,000 August 31 Cash 23,100 August 31 Short-Term Investments-Trading 22,350 August 31 Gain on Disposal 750