Question

Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the...

Entries for Stock Investments, Dividends, and Sale of Stock

Yerbury Corp. manufactures construction equipment.

Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year:

Feb. 2 Purchased for cash 1,050 shares of Wong Inc. stock for $54 per share plus a $525 brokerage commission.
Mar. 16 Received dividends of $0.30 per share on Wong Inc. stock.
June 7 Purchased 600 shares of Wong Inc. stock for $61 per share plus a $300 brokerage commission.
July 26 Sold 1,250 shares of Wong Inc. stock for $66 per share less a $625 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Feb. 2 Investments-Wong Inc. Stock
Cash
Mar. 16 Cash
Dividend Revenue
June 7 Investments-Wong Inc. Stock
Cash
July 26 Cash
Gain on Sale of Investments
Investments-Wong Inc. Stock
Sept. 25 Cash
Dividend Revenue

Homework Answers

Answer #1
Feb. 2 Investments-Wong Inc. Stock 57225 =(1050*54)+525
Cash 57225
Mar. 16 Cash 315 =1050*0.30
Dividend Revenue 315
June 7 Investments-Wong Inc. Stock 36900 =(600*61)+300
Cash 36900
July 26 Cash 81875 =(1250*66)-625
Gain on Sale of Investments 12350
Investments-Wong Inc. Stock 69525 =(1050*54.50)+(1250-1050)*61.50
Sept. 25 Cash 160 =(1050+600-1250)*0.40
Dividend Revenue 160
Workings:
Per share cost of Feb 2 54.50 =57225/1050
Per share cost of June 7 61.50 =36900/600
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