Question

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 1,000 shares of Wong Inc. stock for $54 per share plus a $500 brokerage commission.
Mar. 16	Received dividends of $0.20 per share on Wong Inc. stock.
June 7	Purchased 650 shares of Wong Inc. stock for $64 per share plus a $325 brokerage commission.
July 26	Sold 1,150 shares of Wong Inc. stock for $69 per share less a $575 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25	Received dividends of $0.30 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
Mar. 16
June 7
July 26
Sept. 25

Answer 1

Date	Account and explanation	Debit (in $ )	Credit ( in $ )
Feb. 2	Investments- Wong Inc.Stock ( 1,000 shares x $ 54 + $ 500 Commission )	$ 54,500
	Cash		$ 54,500
	(To record purchase of shares)
Mar. 16	Cash ( 1,000 shares x $ 0.20 )	$ 200
	Dividend revenue		$ 200
	(To record the dividend received)
June 7	Investments- Wong Inc.Stock ( 650 shares x $ 64 + $ 325 Commission )	$ 41,925
	Cash		$ 41,925
	(To record purchase of shares)
July 26	Cash (1,150 shares x $ 69 (- ) $ 575 )	$ 78,775
	Gain on sale of Investments   - Bal. Fig.		$ 14,600
	Investments- Wong Inc. Shares            ($ 54,500 +( 1,150 shares (-) 1,000 shares x $ 41,925 / 650 )		$ 64,175
	(To record sale of shares)
Sept. 25	Cash ( 1,000 Shares + 650 (-) 1,150 shares) x $ 0.30	$ 150
	Dividend revenue		$ 150
	(To record the dividend received)