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 600 shares of Wong Inc. stock for $64 per share plus a $300 brokerage commission.
Mar. 16	Received dividends of $0.30 per share on Wong Inc. stock.
June 7	Purchased 400 shares of Wong Inc. stock for $74 per share plus a $200 brokerage commission.
July 26	Sold 700 shares of Wong Inc. stock for $79 per share less a $350 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

Answer 1

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 (600*64+300)	38700
	Cash		38700
Mar. 16	Cash (600*.30)	180
	Dividend Revenue		180
June 7	Investments-Wong Inc. Stock (400*74+200)	29800
	Cash		29800
July 26	Cash (700*79-350)	54950
	Gain on Sale of Investments		8800
	Investments-Wong Inc. Stock (38700+29800/400*100)		46150
Sept. 25	Cash (300*.40)	120
	Dividend revenue		120