EX 15-7 Entries for investment in stock, receipt of dividends, and sale of share

Question

EX 15-7 Entries for investment in stock, receipt of dividends, and sale of shares The folowing equity investment-related transactions were completed by Kindle Company in 2012: Jan. 12. Apr. 10. June 3. Purchased 1,400 shares of Inskip Company for a price of $48.90 per share plus a brokerage commission of $112. Received a quarterly dividend of $0.22 per share on the Inskip Company investment. Sold 900 shares for a price of $44.50 per share less a brokerage commission of $65. Journalize the entries for these transactions

Explanation / Answer

12-Jan Investments-Inskip Company Stock 68572 =(1400*48.9)+112            Cash 68572 10-Apr Cash 308 =1400*0.22          Investments-Inskip Company Stock 308 3-Jun Cash 39985 =(900*44.5)-65 Loss on Sale of Investments 4097          Investments-Inskip Company Stock 44082 =68572/1400*900

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