Date Account Titles and Explanation Debit Credit Question 20 PWAT Inc. had these

Question

Date Account Titles and Explanation Debit Credit Question 20 PWAT Inc. had these transactions pertaining to Investments in common stock:

Jan. 1 Purchased 2,000 shares of Pasco Corporation common stock (5% of outstanding shares) for $96,500 cash. July 1 Received a cash dividend of $1.70 per share. Dec. 1 Sold 800 shares of Pasco Corporation common stock for $40,200. 31 Received a cash dividends of $1.70 per share.
Journalize the transactions.

Date Account Titles and Explanation Debit Credit







PWAT Inc. had these transactions pertaining to Investments in common stock:

Explanation / Answer

JAN 1

DEBIT Investment in common stock of Pasco Corporation [2000*48.25] = 96500

CREDIT CASH = 96500

JULY 1

DEBIT CASH(1.70 * 2000) =3400

CREDIT DIVIDEND RECEIVED ON PASCO CORPORATION COMMON STOCK = 3400

DEC 1

DEBIT CASH (800* 50.25) = 40200

CREDIT Investment in common stock of Pasco Corporation[800*48.25] =38600

CREDIT SALE ON nvestment in common stock of Pasco Corporation[800 * (50.25-48.25)] = 1600

DEC 31

DEBIT CASH [1.70*(2000-800)] = 2040

CREDIT DIVIDEND RECEIVED ON PASCO CORPORATION COMMON STOCK = 2040

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