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imn/takeAssignment/takeAssignmentMain.do invoker assignments&itakeAssignmentSessionLocator; assignment-take&kinprogress-false; Calculator on February 12. Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a s240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company, on Au per share less a $160 brokerage fee. gust 22, Lucas paid a dividend per share of $0.42. on November 10, 4,000 shares of Lucas stock were sold for $28 Required: Prepare the journal entries for the orginal purchase, dividend, and sale. If an amount box does not require an Feb. 12 Aug. 22 Nov. 10 031 AM

Explanation / Answer

Investment A/c. Dr

To Bank A/c

132240

Dividend on investment A/c Dr

To P&L A/c

2520

Bank A/c. Dr

To Investment A/c

To Gain on sale of investment A/c

111840

88160

23680

Cost of 4000 share = (132240/6000)*4000

=$88160

Date Particular Amount Dr Amount Cr Feb 12

Investment A/c. Dr

To Bank A/c

132240

132240 Aug 22

Dividend on investment A/c Dr

To P&L A/c

2520

2520 Nov 10

Bank A/c. Dr

To Investment A/c

To Gain on sale of investment A/c

111840

88160

23680

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