In: Accounting
On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Company common stock for $32 per share. On March 20, Rinehart Company sold 140 shares of Givens stock for $4,060. Rinehart received a dividend of $2.00 per share on April 25. On June 15, Rinehart sold 280 shares of Givens stock for $10,640. On July 28, Rinehart received a dividend of $3.00 per share. Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Date |
Account Titles and explanations |
Debit |
Credit |
Feb-01 |
Investment in Shares |
22400 |
|
To Cash |
22400 |
||
(Being 700 Shares of given Company @ 32 Per Share Purchased) |
|||
Mar-20 |
Cash |
4060 |
|
Loss on Sale of Share |
140 |
||
To Investment in Shares |
4480 |
||
(Being 140 Shares bought @ 32 Each sold at 29 Each) |
|||
Apr-25 |
Cash |
1120 |
|
To Dividend Received |
1120 |
||
(Being Dividend received on 560 shares @ 2.0 per share) |
|||
Jun-15 |
Cash |
10,640 |
|
To Investment in Shares |
8960 |
||
To Profit on Sale of Share |
1680 |
||
(Being 280 Shares bought @ 32 Each sold) |
|||
Jul-28 |
Cash |
840.0 |
|
To Dividend Received |
840 |
||
(Being Dividend received on 280 shares @ 3 per share) |
|||