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 1 year ago

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