Soils Company had these transactions pertaining to stock investments: Feb. 1 Pur

Question

Soils Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1,200 shares of JB common stock (2% of outstanding shares) for $8,400. July 1 Received cash dividends of $2 per share on JB common stock. Sept. 1 Sold 500 shares of JB common stock for $5,400. Dec. 1 Received cash dividends of $1 per share on JB common stock.

Date

Account Titles and Explanation

Debit

Credit

Feb. 1

July 1

Sept. 1

Dec. 1

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 125.)

Date

Account Titles and Explanation

Debit

Credit

Feb. 1

July 1

Sept. 1

Dec. 1

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Explanation / Answer

Journal Entries

Feb 1

Investment in J.B. Stocks Dr 8,400

Cash Cr 8,400

July 1

Cash Dr 2,400 ( 1,200 X 2)

Investment in J.B. Stocks Cr 2,400

Sept 1.

Cash Dr 5,400

Investment in J.B. Stocks Cr 2,500 ( ( 8,400 - 2,400) X 500 / 1,200)

Gain on sale of investment Cr 2,900

Dec 1

Cash Dr 700 ( ( 1,200 - 500) X $1)

Investment in J.B. Stock Cr 700

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.