Question

On February 10, 16,000 shares of Sting Company are acquired at a price of $24 per...

On February 10, 16,000 shares of Sting Company are acquired at a price of $24 per share plus a $160 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Sting Company stock. On May 29, 6,400 shares of the Sting Company stock were sold for $32 per share less a $100 brokerage commission.Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
10-Feb Investments-Sting Company Stock 384160 =(16000*24)+160
               Cash 384160
12-Apr Cash 6400 =16000*0.4
          Dividend revenue 6400
29-May Cash 204700 =(6400*32)-100
         Investments-Sting Company Stock 153664 =384160/16000*6400
         Gain on Sale of Investments 51036
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On February 10, 15,000 shares of Sting Company are acquired at a price of $25 per...
On February 10, 15,000 shares of Sting Company are acquired at a price of $25 per share plus a $150 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Sting Company stock. On May 29, 6,000 shares of the Sting Company stock were sold for $32 per share less a $120 brokerage commission.
On January 23, 17,000 shares of Tolle Company are acquired at a price of $24 per...
On January 23, 17,000 shares of Tolle Company are acquired at a price of $24 per share plus a $180 brokerage commission. On April 12, a $0.30-per-share dividend was received on the Tolle Company stock. On June 10, 6,600 shares of the Tolle Company stock were sold for $31 per share less a $125 brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for...
On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per...
On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $140 brokerage commission. On April 12, a $0.35-per-share dividend was received on the Tolle Company stock. On June 10, 5,200 shares of the Tolle Company stock were sold for $31 per share less a $115 brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for...
The investments of Charger Inc. include a single investment: 11,010 shares of Raiders Inc. common stock...
The investments of Charger Inc. include a single investment: 11,010 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $39 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $42 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer...
The investments of Charger Inc. include a single investment: 14,560 shares of Raiders Inc. common stock...
The investments of Charger Inc. include a single investment: 14,560 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $41 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer...
On February 15, Jewel Company buys 7,200 shares of Marcelo Corp. common stock at $28.55 per...
On February 15, Jewel Company buys 7,200 shares of Marcelo Corp. common stock at $28.55 per share plus a brokerage fee of $410. The stock is classified as available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.17 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.32 per share less a...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 39,500 shares of its common stock at $42 per share. On April 30, Lava Lake Inc. sold 30,100 of the reacquired shares at $51 per share. On August 22, Lava Lake Inc. sold 9,400 shares at $41 per share. Required: A. Journalize the transactions of February 11, April 30, and August 22. Refer to the Chart of Accounts for exact wording of...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share. Required: A. Journalize the transactions of February 11, April 30, and August 22. Refer to the Chart of Accounts for exact wording of...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava...
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 40,300 shares of its common stock at $42 per share. On April 30, Lava Lake Inc. sold 32,400 of the reacquired shares at $49 per share. On August 22, Lava Lake Inc. sold 7,900 shares at $41 per share. Required: A. Journalize the transactions of February 11, April 30, and August 22. Refer to the Chart of Accounts for exact wording of...
At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock...
At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT