On April 1,2018,Morton Company invests $50,000 in Johnson Company stock.Johnson pays Morton a $2,000 dividend on November 30,2018.Morton sells the Johnson stock on December 31,2018 for $54,500.Assume the investment is categorized as a short-term equity investment and that Morton does not have significant influence over Johnson.
Requirements:
1.Journalize the transactions for Morton's investment in Johnson's stock.
2.What was the net effect of the investment on Morton's net income for the year ended December 31,2018.

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The Answer of On April 1,2018,Morton Company invests $50,000 in Johnson Company stock.Johnson pays Morton a $2,000 dividend on November 30,2018.Morton sells the Johnson stock on December 31,2018 for $54,500.Assume the investment is categorized as a short-term equity investment and that Morton does not have significant influence over Johnson.
Requirements:
1.Journalize the transactions for Morton's investment in Johnson's stock.
2.What was the net effect of the investment on Morton's net income for the year ended December 31,2018.

On April 1,2018,Morton Company Invests $50,000 in Johnson Company Stock