On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Co
ID: 2429624 • Letter: O
Question
On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Company common stock for $32 per share. On March 20, Rinehart Company sold 140 shares of Givens stock for $4,060. Rinehart received a dividend of $2.00 per share on April 25. On June 15, Rinehart sold 280 shares of Givens stock for $10,640. On July 28, Rinehart received a dividend of $3.00 per share. Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Explanation / Answer
Date
Account Titles and explanations
Debit
Credit
Feb-01
Investment in Shares
22400
To Cash
22400
(Being 700 Shares of given Company @ 32 Per Share Purchased)
Mar-20
Cash
4060
Loss on Sale of Share
140
To Investment in Shares
4480
(Being 140 Shares bought @ 32 Each sold at 29 Each)
Apr-25
Cash
1120
To Dividend Received
1120
(Being Dividend received on 560 shares @ 2.0 per share)
Jun-15
Cash
10,640
To Investment in Shares
8960
To Profit on Sale of Share
1680
(Being 280 Shares bought @ 32 Each sold)
Jul-28
Cash
840.0
To Dividend Received
840
(Being Dividend received on 280 shares @ 3 per share)
Date
Account Titles and explanations
Debit
Credit
Feb-01
Investment in Shares
22400
To Cash
22400
(Being 700 Shares of given Company @ 32 Per Share Purchased)
Mar-20
Cash
4060
Loss on Sale of Share
140
To Investment in Shares
4480
(Being 140 Shares bought @ 32 Each sold at 29 Each)
Apr-25
Cash
1120
To Dividend Received
1120
(Being Dividend received on 560 shares @ 2.0 per share)
Jun-15
Cash
10,640
To Investment in Shares
8960
To Profit on Sale of Share
1680
(Being 280 Shares bought @ 32 Each sold)
Jul-28
Cash
840.0
To Dividend Received
840
(Being Dividend received on 280 shares @ 3 per share)
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