had the following transactions in 2 Lacy Inc had the followi

2. Lacy Inc. had the following transactions in 2017 pertaining to investments in commor stock Jan. 1 Purchased 4,000 shares of Morgan Corporation common stock (5%) for July 1 Dec. 1 Dec. 31 $180,000 cash. Received a cash dividend of $3 per share. Sold 600 shares of Morgan Corporation common stock for $32,000 cash. Received a cash dividend of $3 per share.

Solution

Solution 2:

Note: As multiple questions are posted i have answered first question as per chegg policy. Further information of income is also misssing in 2nd question.

Journal Entries - Lucy Inc.
Date	Particulars	Debit	Credit
1-Jan	Investment in Morgan Corporation Dr	$180,000.00
	To Cash		$180,000.00
	(To record purchase of shares of morgan corporation)
1-Jul	Cash Dr	$12,000.00
	To Dividend Revenue		$12,000.00
	(To record dividend income)
1-Dec	Cash Dr	$32,000.00
	To Investment in Morgan Corporation		$27,000.00
	To Gain on sale of investment		$5,000.00
	(To record sale of investment)
31-Dec	Cash Dr	$10,200.00
	To Dividend Revenue		$10,200.00
	(To record dividend income)