Rocktown Corporation bought 780 shares of General Eccentric stock on March 20 fo
ID: 2719857 • Letter: R
Question
Rocktown Corporation bought 780 shares of General Eccentric stock on March 20 for its trading securities portfolio at $26 per share. Rocktown sold the stock at $30 per share on June 23.
Prepare the journal entries to record the transactions on each of these dates, assuming that the investment had not yet been adjusted to fair value (that is, the investment was still recorded at cost at the time of sale).
Transaction List:
1) Record the purchase of 780 shares of General Eccentric stock by Rocktown Corporation for its trading securities portfolio at $26 per share
2) Record the sale of General Eccentric’s stock by Rocktown Corporation at $30 per share. The investment had not been adjusted for any difference between the purchase price and fair value.
Rocktown Corporation bought 780 shares of General Eccentric stock on March 20 for its trading securities portfolio at S26 per share. Rocktown sold the stock at $30 per share on June 23. Prepare the journal entries to record the transactions on each of these dates, assuming that the investment had not yet been adjusted to fair value (that is, the investment was still recorded at cost at the time of sale) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) view transaction list view general journal Journal Entry Worksheet transaction list own 1. Record the purchase of 780 shares of General Eccentric it stock by Rocktown Corporation for its trading securities portfolio at $26 per share. 280 2. Record the sale of General Eccentric's stock by Rocktown Corporation at $30 per share. The investment had not been adjusted for any difference between the purchase price and fair value fore credits rd entryExplanation / Answer
Date General journal Debt in$ Credit in$ Mar-20 Investment in trading securities 20280 CASH 20280 Jun-23 Investment in securities 23400 Cash 23400
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