Freedom Company purchased 20,000 shares of Midi, Inc. for $30 per share on March 1,...
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Freedom Company purchased 20,000 shares of Midi, Inc. for $30 per share on March 1, 2020. This purchase represents less than 1% of Midi's common shares outstanding. On July 1, 2020 Freedom Company sold 2,500 shares of Midi, Inc. for $35 per share. On December 1, 2020, Midi Company declared and paid dividends of $2 per share. At December 31, 2020 the market price of Midi, Inc.'s stock was $28 per share. 1 A B I % Prepare Freedom's 2020 journal entries involving this investment including initial purchase, sale of shares, receipt of dividends and any other adjusting entries needed to issue financial statements as of 12/31/2020
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