Yerbury Corp. manufactures construction equipment. Journalize the entries to rec
ID: 2583317 • Letter: Y
Question
Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during 2016. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. Feb. 2 Purchased for cash 5,000 shares of Wong Inc. stock for $20 per share plus a $115 brokerage commission Mar. 6Received dividends of $0.25 per share on Wong Inc. stock. Purchased 2,000 shares of Wong Inc. stock for $28 per share plus a $110 brokerage commission Sold 6,100 shares of Wong Inc. stock for $37 per share less a $115 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold Received dividends of $0.45 per share on Wong Inc. stock. June 7 July 26 Sept. 25Explanation / Answer
Date Description Post. Ref Debit ($) Credit ($) Feb 2 Invetment in Wong Inc stock [(5,000 shares * $20) + $115] 100,115 Cash 100,115 (To record purchase of 5,000 shares of Wong Inc) Mar 6 Cash 1,250 Dividends Revenue (5,000 shares * $0.25) 1,250 (To record receipt of dividend revenue) June 7 Invetment in Wong Inc stock [(2,000 shares * $28) + $110] 56,110 Cash 56,110 (To record purchase of 2,000 shares of Wong Inc) July 26 Cash (6,100 * $ 37) 2,25,700 Invetment in Wong Inc stock [{$100,115 + ($56,110 * 1,100 / 2,000 )}- $115] 130,860 Gains on sales of Investment ($2,25,700 - $130,860) 94,840 (To record sales of 6,100 shares of Wong Inc held as investment) Sept 25 Cash 405 Dividends Revenue (5,000 + 2,000 - 6,100) * $0.45 405 (To record receipt of dividend revenue)
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