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EX 13-7 in 2016: Mar. 4. Purchased 4,000 shares of Jas Company for a price of $5

ID: 2578267 • Letter: E

Question

EX 13-7 in 2016: Mar. 4. Purchased 4,000 shares of Jas Company for a price of $50 per share plus a May 12. Received a quarterly dividend of $0.75 per share on the Jas Company Entries for investment in stock, receipt of dividends, and sale of shares oBJ.3 sale The following equity investment transactions were completed by Chung Company 15 brokerage commission of $100. investment. June 17. Sold 1,400 shares for a price of $44 per share less a brokerage commission of $80. Journalize the entries for these transactions.

Explanation / Answer

Journal entries:

Date

Particulars

Debit

Credit

Mar-04

investment in jas company(4000*50+100)

$200,100

                               To cash

$200,000

May-12

    cash

$3,000

          to dividend revenue (4000*0.75)

$3,000

Jun-17

cash   (1400*44-80)

$61,520

loss on sale of investment

$8,515

                to investment in jas company(1400/4000*200,100)

$70,035

Date

Particulars

Debit

Credit

Mar-04

investment in jas company(4000*50+100)

$200,100

                               To cash

$200,000

May-12

    cash

$3,000

          to dividend revenue (4000*0.75)

$3,000

Jun-17

cash   (1400*44-80)

$61,520

loss on sale of investment

$8,515

                to investment in jas company(1400/4000*200,100)

$70,035

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