Smith Corporation purchases $620,000 of TMI Corporation stock on October 18, 2018. Smith Corporation classifies this investment as a trading security. On December 1, Smith Corporation received a cash dividend of $12,000 on the TMI Corporation stock. On December 31, 2018, Smith Corporation's investment in TMI Corporation has a fair value of $600,000.
Required:
Prepare the necessary journal entries. Explanations are not required.

Question

Quizplus · Accepted Answer

The Answer of Smith Corporation purchases $620,000 of TMI Corporation stock on October 18, 2018. Smith Corporation classifies this investment as a trading security. On December 1, Smith Corporation received a cash dividend of $12,000 on the TMI Corporation stock. On December 31, 2018, Smith Corporation's investment in TMI Corporation has a fair value of $600,000.
Required:
Prepare the necessary journal entries. Explanations are not required.

Smith Corporation Purchases $620,000 of TMI Corporation Stock on October