EX 13-8 Y Entries for stock investments, dividends, and sale of stock OBJ. 3 ide
ID: 2578271 • Letter: E
Question
EX 13-8 Y Entries for stock investments, dividends, and sale of stock OBJ. 3 idend erbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during 2016: Feb. 2. Purchased for cash 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission. 6. Received dividends of $0.30 per share on Wong Inc. stock. 7. Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $120 Mar. June brokerage commission. July 26. Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25. Received dividends of $0.40 per share on Wong Inc. stock.
Explanation / Answer
DR CR Feb-02 Investments—Wong inc. Stock 106110 Cash 5300*20+110 106110 Mar-06 Cash 1590 Dividend Revenue 1590 Jun-07 Investments—Wong inc. Stock 52120 Cash 2000*26+120 52120 Jul-26 Cash =6000*35-100 209900 Gain on Sale of Investments 85866.50 Investments—Wong inc. Stock 124033.50 Feb 2 Purchase Cost 106110 June 7 Purchase cost (51210/2000)*(6000-5300) 17924 Total Cost of investment sold 124033.5 Sep-25 Cash 1300*.40 520 Dividend Revenue 520
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.