Answer:
Explanation:
The journal entries are shown below:
On March 22
Short term investment A/c Dr $18,670 (770 shares ×$24 + $190)
To Cash A/c $18,670
(Being the short term investment is purchased for cash)
On September 1
Cash A/c Dr $3,080
To Dividend A/c $3,080
(Being cash is received in respect of dividend)
On October 8
Cash A/c Dr $12,910 (385 shares ×$34 - $180)
To Short term investment A/c $9,335 ( $18,670 × 770 shares ÷ 385 shares)
To Gain on investment $3,575
(Being short term investment is sold and the remaining amount is credited to the gain on investment account)