Question

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

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