Question

In: Accounting

On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Company common stock for...

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.)

Solutions

Expert Solution

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)


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