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?

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 2 years ago

You purchased 100 shares of common stock on margin for $150 per share. The initial margin...

You purchased 100 shares of common stock on margin for $150 per share. The initial margin requirement is 65%, the maintenance margin requirement is 40%. Find your rate of return in % if you sell the stock at $180 per share exactly 1 year later if interest rate on margin loan is 10%

1.Boris Corporation issued 25,000 shares of $10 par value common stock at $30 per share. As...

1.Boris Corporation issued 25,000 shares of $10 par value common stock at $30 per share. As a result of this transaction, Boris Corporation’s: A. Paid in Capital in Excess of Par Value increased by $250,000 B. Paid in Capital in Excess of Par Value increased by $750,000 C. Common Stock increased by $250,000 D. Common Stock increased by $750,000 2.Karin, Inc. has 5,000 shares of 6%, $200 par value, cumulative preferred stock and 100,000 shares of $2 par value common...

Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value

Treasury Stock Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Pomona sold 1,500 shares of the treasury stock at $30 per share. Prepare the general journal...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin is 60%, and the stock pays no dividend. Your rate of return would be ________ if you sell the stock at $48 per share. Ignore interest on margin. 0.132 0.238 0.111 0.208

You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the...

You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. Round your answer to the nearest cent (2 decimal places).

An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The...

An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The company declared and paid a dividend of Ghc2 per share during the year. The investor sold the stock for Ghc21 per share after the one year holding period. Calculate the cedi return from this investment. Calculate the HPR for this investment. Partition the HPR into its dividend and capital appreciation components.

Common stock: 265,000 shares of common stock selling for $76 per share. The stock has a...

Common stock: 265,000 shares of common stock selling for $76 per share. The stock has a beta of 0.92 and will pay a dividend of $2.48 next year. The dividend is expected to grow by 4 percent per year indefinitely. Preferred stock: 7,500 shares of 6 percent preferred stock (par value $100) selling at $88 per share. Debt: 8,500 units of 7.1 percent coupon bonds outstanding, with 14 years to maturity and a quoted price of 102.6%. These bonds pay...

You purchased 100 shares of Express Scripts common stock on margin at $70.38 per share. Assume...

You purchased 100 shares of Express Scripts common stock on margin at $70.38 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $71.75. If the broker’s call loan rate is 2.00%, what is your return on equity? Can I please get a step by step breakdown so that I can better understand the process involved? Thank you.

Sara Sanders purchased 30 shares of Apple stock at $189.15 per share using the prevailing minimum...

Sara Sanders purchased 30 shares of Apple stock at $189.15 per share using the prevailing minimum initial margin requirement of 59%. She held the stock for exactly 4 months and sold it without any brokerage costs at the end of that period. During the 4-month holding period, the stock paid $1.41 per share in cash dividends. Sara was charged 5.6% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the transaction,...

6. Sara Sanders purchased 30 shares of Apple stock at $189.29 per share using the prevailing...

6. Sara Sanders purchased 30 shares of Apple stock at $189.29 per share using the prevailing minimum initial margin requirement of 51%. She held the stock for exactly 5 months and sold it without any brokerage costs at the end of that period. During the 5-month holding period, the stock paid $1.37 per share in cash dividends. Sara was charged 4.8% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the...

Question