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On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per...

On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per share. The stock is classified as a stock investment with insignificant influence. This is the company’s first and only stock investment. On March 15, Marcelo Corp. declares a dividend of $1.55 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 $30.10 per share. The journal entry to record the sale of the 4,300 shares of stock on November 17 is:

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Answer #1

Answer- Sale of share- 4,300 (8,600 shares /2)

Selling price - $30.10

Sale proceeds-$129,430

Cost of Investments

Shares (units)- 4,300

Purchase price- $29.33

Purchase cost - $126,119

Gain on sale= $129,430-$126,119

=$3,311

Journal entry to record the sale of the 4,300 shares of stock on November 17

Date Account Title and Explanation Debit ($) Credit ($)
Nov.17 Cash 129,430
Long Term Investment- Trading 126,119
Gain on sale of Long-Term Investments 3,311
(To record the sale of 4,300 shares of stock on November 17)
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