In: Accounting
Yerbury Corp. manufactures construction equipment.
Journalize the entries to record the following selected equity investment transactions completed by Yerbury during 2016. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
Feb. | 2 | Purchased for cash 5,100 shares of Wong Inc. stock for $18 per share plus a $110 brokerage commission. |
Mar. | 6 | Received dividends of $0.35 per share on Wong Inc. stock. |
June | 7 | Purchased 2,000 shares of Wong Inc. stock for $25 per share plus a $130 brokerage commission. |
July | 26 | Sold 6,200 shares of Wong Inc. stock for $36 per share less a $110 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. |
Sept. | 25 | Received dividends of $0.50 per share on Wong Inc. stock. |
Chart of Accounts
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Journal
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar..
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JOURNAL
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Solution:
Journal Entries - Yerbury Corp. | |||
Date | Particulars | Debit | Credit |
2-Feb | Investment - Wong Inc. Stock Dr (5100*$18 + $110) | $91,910.00 | |
To Cash | $91,910.00 | ||
(Being investment made in Wong Inc stock) | |||
6-Mar | Cash Dr | $1,785.00 | |
To Dividend Revenue (5100*$0.35) | $1,785.00 | ||
(Being dividend received on Wong Inc stock) | |||
7-Jun | Investment - Wong Inc. Stock Dr (2000*$25 + $130) | $50,130.00 | |
To Cash | $50,130.00 | ||
(Being investment made in Wong Inc stock) | |||
26-Jul | Cash Dr (6200*$36 - $110) | $223,090.00 | |
To Investment - Wong Inc. Stock [$91,910 + ($50,130*1100/2000)] | $119,481.50 | ||
To Gain on sales of investment | $103,608.50 | ||
25-Sep | Cash Dr | $450.00 | |
To Dividend Revenue (900*$0.50) | $450.00 | ||
(Being dividend received on Wong Inc stock) |