Question

The following equity investment transactions were completed by Vintage Company during a recent year:

Apr.	10.	Purchased 11,000 shares of Delew Company’s common stock for a price of $60 per share plus a brokerage commission of $220. Delew Company has 250,000 shares of common stock outstanding.
July	8.	Received a quarterly dividend of $0.85 per share on the Delew Company investment.
Sept.	10.	Sold 3,000 shares for a price of $54 per share less a brokerage commission of $90.
Dec.	31.	At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company’s stock was $59.90 per share.

Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.

Answer 1

Date	Particular	Debit	Credit
April 10	Investment-Deview company stock (11,000*$60 + 220)	660,200
	Cash		660,200
	(Being purchase 11,000 share @60 plus $220 brokerage commission)
July 8	Cash	9,350
	Dividend revenue		9,350
	(Being received dividend $0.85 per share for 11,000 shares)
Sept. 10	Cash ((3,000 * 54)-90)	161,910
	Loss on sale of investment	18,155
	Investment-Deiew company stock (660,200 / 11,000) *3,000		180,055
	(Being sold 3,000 share @54 less $90 brokerage commission)
Dec. 31	Unreliazed loss on equity investment (8,000 * 0.10)	800
	Valuation allowances gor equity investment		800
	(Being unrealized loss at the end of year)