Seamus Industries Inc. buys and sells investments as part of its ongoing cash ma
ID: 2471934 • Letter: S
Question
Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 1,200 shares of Tett Co. stock for $88 per share plus a $135 brokerage commission. May 16 Acquired 3,000 shares of Issacson Co. stock for $38 per share plus a $85 commission. July 14 Sold 300 shares of Tett Co. stock for $101 per share less a $85 brokerage commission. Aug. 12 Sold 750 shares of Issacson Co. stock for $32.00 per share less an $90 brokerage commission. Oct. 31 Received dividends of $0.45 per share on Tett Co. stock. 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.
Explanation / Answer
Date
Account titles
Explanation
Debit
Credit
Feb-24
Investments - Tett Co.
(1,200 shares * $88) + $135
$ 105,735.00
Cash
$ 105,735.00
May-16
Investment - Issacson Co.
(3,000 shares * $38) + $85
$ 114,085.00
Cash
$ 114,085.00
Jul-14
Cash
(300 shares * $101) - $85
$ 30,215.00
Gain on sale of investments
$ 3,781.00
Investments - Tett Co.
($105,735 / 1,200) * 300
$ 26,434.00
Aug-12
Cash
(750 shares * $32) - $90
$ 23,910.00
Loss on sale of investments
$ 4,611.00
Investment - Issacson Co.
($114,085/3000)*750
$ 28,521.00
Oct-31
Cash
$ 405.00
Dividend revenue
(1,200 - 300)*$0.45
$ 405.00
Date
Account titles
Explanation
Debit
Credit
Feb-24
Investments - Tett Co.
(1,200 shares * $88) + $135
$ 105,735.00
Cash
$ 105,735.00
May-16
Investment - Issacson Co.
(3,000 shares * $38) + $85
$ 114,085.00
Cash
$ 114,085.00
Jul-14
Cash
(300 shares * $101) - $85
$ 30,215.00
Gain on sale of investments
$ 3,781.00
Investments - Tett Co.
($105,735 / 1,200) * 300
$ 26,434.00
Aug-12
Cash
(750 shares * $32) - $90
$ 23,910.00
Loss on sale of investments
$ 4,611.00
Investment - Issacson Co.
($114,085/3000)*750
$ 28,521.00
Oct-31
Cash
$ 405.00
Dividend revenue
(1,200 - 300)*$0.45
$ 405.00
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