Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the...

Entries for Stock Investments, Dividends, and Sale of Stock

Yerbury Corp. manufactures construction equipment.

Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year:

Feb. 2	Purchased for cash 700 shares of Wong Inc. stock for $59 per share plus a $350 brokerage commission.
Mar. 16	Received dividends of $0.30 per share on Wong Inc. stock.
June 7	Purchased 500 shares of Wong Inc. stock for $69 per share plus a $250 brokerage commission.
July 26	Sold 850 shares of Wong Inc. stock for $74 per share less a $425 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.

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Feb. 2	Investments-Wong Inc. Stock
	Cash
Mar. 16	Cash
	Dividend Revenue
June 7	Investments-Wong Inc. Stock
	Cash
July 26	Cash
	Gain on Sale of Investments
	Investments-Wong Inc. Stock
Sept. 25	Cash
	Dividend Revenue

Solutions

Expert Solution

Date	Entry	Debit	Credit
2 Feb	Investment-wrong inc stock	41650
	Cash		41650

16 Mar	Cash	210
	Dividend Revenue		210

7 June	Investment-wrong inc stock	34750
	Cash		34750

26 July	Cash	62475
	Gain on sale of investment		10400
	Investment-wrong inc stock		52075

25 Sep	Cash	140
	Dividend Revenue		140

Working:

Date	Detail	No of Share	Per Share	Brokerage	Working	Investment Price
2 Feb	Purchase	700	59	350	(700*59)+350	41650
16 Mar	Dividend	700	0.3		(700*0.3)	210

7 June	Purchase	500	69	250	(500*69)+250	34750

26 July	Sale	-850	74	425	(850*74)-425	62475

25 Sep	Dividend (700+500-850)	350	0.4		(350*0.4)	140


					Purchase Price of Shares Sold (FIFO)

					700 Share pur on 2 Feb	41650
					150 Shares pur on 7 Jun	10425
					(34750/500)*150
					Total Cost of Shares Sold	52075
					Sale Price	62475
					Gain	10400

ekkarill92 answered 1 year ago

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