Question 1 (of 6) 8.33 points Exerclse 15-2 Accounting for short-term trading se

Question

Question 1 (of 6) 8.33 points Exerclse 15-2 Accounting for short-term trading securtles LO P Prepare journal entries to record the following transactions involving the short-term securities investments of Duke Co all of which occurred during year 2015. a. On March 22, purchased 890 shares of RIP Company stock at $18 per share plus an $160 brokersge fee These shares are categorized as trading securities b. On September 1, received a $2 per share cash dividend on the RIP Company stock purchased in c. On October 8, sold 445 shares of RIP Co. stock for $28 per share, less a $150 brokerage fee transaction a View transaction list Journal entry worksheet On March 22, purchased 890 shares of RIP Company stock at $18 per share plus a $160 brokerage fee. These shares are categorized as trading securities Note Enter debits before credits Debit Credit General Journal View general journal Clear entry Record entry

Explanation / Answer

General journal

Debit

credit

a

On march 22 purchased 890 shares of RIP company stock at $18 per share plus an $160 brokerage fee

Short term investments- Trading RIP

160

            Cash

160

(890*$18)+$160

b

On September 1 received a $2 per share cash dividend on RIP company stock purchased

cash

1780

      Dividend revenue

1780

(890*$2)

c

On October 8 sold 445 shares of RIP co stock for $128 per share less a brokerage fee

Cash

12310

     Short-term investments - trading RIP

8090

    Gain on sale of short-term investments

4220

sold :($445*28)-$150

Short-term investments :(16180/2)

General journal

Debit

credit

a

On march 22 purchased 890 shares of RIP company stock at $18 per share plus an $160 brokerage fee

Short term investments- Trading RIP

160

            Cash

160

(890*$18)+$160

b

On September 1 received a $2 per share cash dividend on RIP company stock purchased

cash

1780

      Dividend revenue

1780

(890*$2)

c

On October 8 sold 445 shares of RIP co stock for $128 per share less a brokerage fee

Cash

12310

     Short-term investments - trading RIP

8090

    Gain on sale of short-term investments

4220

sold :($445*28)-$150

Short-term investments :(16180/2)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.