The following equity investment transactions were completed by Chung Company in

Question

The following equity investment transactions were completed by Chung Company in 2016:

*Mar. 4 Purchased 4,400 shares of Jas Company for a price of $50 per share plus a brokerage commission of $115.

*May 12 Received a quarterly dividend of $0.65 per share on the Jas Company investment.

*June 17 Sold 1,200 shares for a price of $41 per share less a brokerage commission of $90.

Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

JOURNAL

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CHART OF ACCOUNTS Chung Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Jas Company Stock 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Jas Company 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Jas Company 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments

Explanation / Answer

Chung Company Journal Entries Date Account Title Dr $ Cr $ Mar 4. Investment -Jas Company Stock              220,115 Cash          220,115 ( investment in 4400 shares of Jas @$50 plus $115 brokerage) May 12. Dividend Revenue              2,860 Cash                  2,860 June 17. Cash                49,110 Investment -Jas Company Stock            60,036 Loss on Sale of Investment                10,926 ( sale of 1200 shares @ $41 less $90 brokerage)

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