purchased 150 shares of Henry Corporation common stock for $30 per share plus commission of $120....

purchased 150 shares of Henry Corporation common stock for $30 per share plus commission of $120. Immediately issued a ACH payment to Central Brokerage. What is the journal entry and if so, are there two journal entries, one for purchase and the other for cash disbursement?

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Expert Solution

Using single entry

Transaction	Account title	Debit	Credit
1	Investment in Henry Corporation common stock ((150*30)+120)	4,620
	Cash		4,620
	*(To record purchased 150 shares of Henry Corporation common stock.)*

Using two entries

Transaction	Account title	Debit	Credit
1	Investment in Henry Corporation common stock	4,620
	Cash (150*30)		4,500
	Commission payable to ACH - Central Brokerage		120
	*(To record purchased 150 shares of Henry Corporation common stock.)*

2	Commission payable to ACH - Central Brokerage	120
	Cash		120
	*(To record issued a ACH payment to Central Brokerage.)*

ekkarill92 answered 1 year ago

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