For each situation, give the appropriate journal entry(s). Assume the cost method is used.
(a) On January 1, 2013, Investor A purchased (for cash) a long-term investment, 1,000 shares (1 percent) of 6 percent, cumulative, preferred shares of Corporation B at $48 per share, when one year of dividends was in arrears.
(b) On March 1, 2013, Investor A received a 100 percent stock split on the B stock.
(c) On December 31, 2014, Investor A received notice that the board of directors of Corporation B had declared cash dividends on the preferred stock sufficient to cover the arrears and the current year.

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The Answer of For each situation, give the appropriate journal entry(s). Assume the cost method is used.
(a) On January 1, 2013, Investor A purchased (for cash) a long-term investment, 1,000 shares (1 percent) of 6 percent, cumulative, preferred shares of Corporation B at $48 per share, when one year of dividends was in arrears.
(b) On March 1, 2013, Investor A received a 100 percent stock split on the B stock.
(c) On December 31, 2014, Investor A received notice that the board of directors of Corporation B had declared cash dividends on the preferred stock sufficient to cover the arrears and the current year.

For Each Situation, Give the Appropriate Journal Entry(s)