Receipt of Stock Dividends
Response to the following problem:
On March 2, 2010, the Dawson Corporation acquired 5,000 common shares, representing a 1% interest in the Foreman Corporation, for $60,000. On May 1, 2010, Foreman issued a 20% stock dividend, and on December 31, 2010, the market value was $10 per share. On February 1, 2011, Dawson sold 1,500 shares for $12 per share.
Required
Prepare journal entries for Dawson to record the acquisition, stock dividend, and sale of the shares.