On April 18. Riley Co. made a short-term investment in 460 common shares of XLT

Question

On April 18. Riley Co. made a short-term investment in 460 common shares of XLT Co. The purchase price is $58 per share and the broker's fee is $410. The intent is to actively manage these shares for profit. On May 30. Riley Co. receives $1.50 per share from XLT in dividends. Prepare the April 18 and May 30 journal entries to record these transactions. On April 18, Riley Co. made a short-term investment in 460 common shares of XLT Co. The purchase price is S58 per share and the broker's fee is S410. The intent is to actively manage these shares for profit. On May 30, Riley Co. receives SI.50 per share from XLT in dividends.

Explanation / Answer

April 18

Short term Investment A/c Dr 26,680

Brokers Fees A/c Dr 410

to

Cash Cr 27090

May 30th

Cash A/c Dr 690

to Dividend Revenue 690

  

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