Question

Ivanhoe Inc. had these transactions pertaining to investments in common stock: Jan. 1 Purchased 1,225 shares...

Ivanhoe Inc. had these transactions pertaining to investments in common stock:

Jan. 1 Purchased 1,225 shares of Gate Corporation common stock (5% of outstanding shares) for $62,475 cash.
July 1 Received a cash dividend of $7 per share.
Dec. 1 Sold 898 shares of Gate Corporation common stock for $48,010 cash.
31 Received a cash dividend of $7 per share.

Journalize the transactions.

Date

Account Titles and Explanation

Debit

Credit
Jan. 1
July 1
Dec. 1
Dec. 31
Business   Accounting   
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Answer #1
Date Account Titles and Explanation Debit Credit
Jan. 1 Stock Investments 62475
      Cash 62475
July 1 Cash 8575 =1225*7
       Dividend Revenue 8575
Dec. 1 Cash 48010
      Stock Investments 45798 =62475/1225*898
      Gain on Sale of Stock Investments 2212
Dec. 31 Cash 2289 =(1225-898)*7
       Dividend Revenue 2289
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