Answered Essay: a. Investments are classified as trading. (1) Ohlson Co. purchases 5,000 common shares of Freeman Co. at $16 cas

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a. Investments are classified as trading. (1) Ohlson Co. purchases 5,000 common shares of Freeman Co. at $16 cash per share. (2) Ohlson Co. receives a cash dividend of $1.25 per common share from Freeman. (3) Year-end market price of Freeman common stock is $17.50 per share. (4) Ohlson Co. sells all 5,000 common shares of Freeman for $86,400 cash (O) prepare journal entries to record the four transactions, (i) post the journal entries to their respective T-accounts, and (iii) record each of the transactions in the financial statement effects template Trading Securities: General Journal Description Debit Credit (4) Cash

a. Investments are classified as trading. (1) Ohlson Co. purchases 5,000 common shares of Freeman Co. at $16 cash per share. (2) Ohlson Co. receives a cash dividend of $1.25 per common share from Freeman. (3) Year-end market price of Freeman common stock is $17.50 per share. (4) Ohlson Co. sells all 5,000 common shares of Freeman for $86,400 cash (O) prepare journal entries to record the four transactions, (i) post the journal entries to their respective T-accounts, and (iii) record each of the transactions in the financial statement effects template Trading Securities: General Journal Description Debit Credit (4) Cash

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