Prepare the Journal Entries for the Following Transactions for Batson $\$ 20.75$

question 63

Essay

Prepare the journal entries for the following transactions for Batson Co. (a) Batson Co. purchased 1,200 shares of the total of 100,000 outstanding shares of Michael Corp. stock for $\$ 20.75$ per share plus a $\$ 70$ commission.
(b) Michael's total earnings for the period are $\$ 84,000$ .
(c) Michael's paid a total of $\$ 40,000$ in cash dividends to sharehol ders of record.

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Definitions:

Short Run

In economics, a period where at least one input, such as plant size or capital, is fixed and cannot be changed, contrasting with the long run where all inputs can vary.

Short Run

A period of time in economics during which at least one input is fixed, limiting the immediate capacity of businesses to adjust to market changes.

Losses

Financial reductions resulting from the operation of a business, particularly when expenses exceed revenues.

Shut Down

In economics, shut down refers to a short-term decision by a firm to cease production because operating costs exceed the revenue generated, particularly when prices fall below variable costs.