15.3 2. The following equity investment transactions were completed by Romero Co

Question

15.3

2.

The following equity investment transactions were completed by Romero Company during a recent year:

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.

Apr. 10 Purchased 3,800 shares of Dixon Company for a price of $49 per share plus a brokerage commission of $120. July 8 Received a quarterly dividend of $0.90 per share on the Dixon Company investment. Sept. 10 Sold 1,200 shares for a price of $41 per share less a brokerage commission of $90.

Explanation / Answer

Journalize the entries for these transactions

Date accounts & explanation debit credit Apr 10 Investments-Dixon Company Stock (3800*49+120) 186320 Cash 186320 July 8 Cash (3800*.90) 3420 Dividend revenue 3420 Set 10 Cash (1200*41-90) 49110 Loss on Sale of Investments 9728 Investments-Dixon Company Stock (186320/3800*1200) 58838

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