On April 3, Evan's Boat Store purchased Yacht stock for $26,000 with the intent of selling the stock at a profit before the boating season starts in two months. On April 28, Evan's Boat Store received dividends from Yacht of $850. On May 25, the Yacht stock was sold for $24,500.
Required:
1. How will Evan's Boat Store classify the investment?
2. Prepare the journal entries needed to record the transactions.
3. What will Evan's Boat Store report on its income statement for the year ended December 31?

Question

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The Answer of On April 3, Evan's Boat Store purchased Yacht stock for $26,000 with the intent of selling the stock at a profit before the boating season starts in two months. On April 28, Evan's Boat Store received dividends from Yacht of $850. On May 25, the Yacht stock was sold for $24,500.
Required:
1. How will Evan's Boat Store classify the investment?
2. Prepare the journal entries needed to record the transactions.
3. What will Evan's Boat Store report on its income statement for the year ended December 31?

On April 3, Evan's Boat Store Purchased Yacht Stock for $26,000