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)

ekkarill92 answered 1 year ago

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