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 800 shares of Wong Inc. stock for $36 per share plus a $400 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 $46 per share plus a $300 brokerage commission. July 26 Sold 900 shares of Wong Inc. stock for $51 per share less a $450 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. Investments-Wong Inc. Stock / Cash v Feb. 2 106,110 x 106,110 X Mar. 16 Cash 1,590 X Dividend Revenue 1,590 X June 7 Investments-Wong Inc. Stock v Cash v 52,125 x 52,125 x July 26 Cash v Gain on Sale of Investments / Investments-Wong Inc. Stock Sept. 25 Cash Dividend Revenue

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 800 shares of Wong Inc. stock for $36 per share plus a $400 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 $46 per share plus a $300 brokerage commission. July 26 Sold 900 shares of Wong Inc. stock for $51 per share less a $450 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. Investments-Wong Inc. Stock / Cash v Feb. 2 106,110 x 106,110 X Mar. 16 Cash 1,590 X Dividend Revenue 1,590 X June 7 Investments-Wong Inc. Stock v Cash v 52,125 x 52,125 x July 26 Cash v Gain on Sale of Investments / Investments-Wong Inc. Stock Sept. 25 Cash Dividend Revenue

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 8E

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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 550 shares of Wong Inc. stock for $41 per share plus a $275 brokerage commission. Mar. 16 Received dividends of $0.20 per share on Wong Inc. stock. June 7 Purchased 350 shares of Wong Inc. stock for $53 per share plus a $175 brokerage commission. July 26 Sold 600 shares of Wong Inc. stock for $57 per share less a $300 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 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.…
Entries for Investment in Stock, Receipt of Dividends, and Sale of Shares The following equity investment transactions were completed by Romero Company during a recent year: Apr. 10. July 8. Purchased 1,800 shares of Dixon Company for a price of $57.75 per share plus a brokerage commission of $450. Received a quarterly dividend of $0.35 per share on the Dixon Company investment. Sept. 10. Sold 1,200 shares for a price of $52 per share less a brokerage commission of $250. Journalize the entries for these transactions. If required, round the final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Apr. 10 - Purchase Investments-Dixon Company Stock Cash ✓ K July 8 Dividend Cash ✓ Dividend Revenue Sept. 10 Sale Cash ✓ Loss on Sale of Investments Investments-Dixon Company Stock ✓
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Journalize the entries to record the following selected equity investment transactions completed by Perry Company during the current year. Perry accounts for this investment using the cost method. Feb. 2 Purchased for cash 900 shares of Dexter Co. stock for $54 per share plus a $450 brokerage commission. This represents a less than 10% ownership interest in the company. Apr. 16 Received dividends of $0.25 per share on Dexter Co. stock. June 17 Sold 200 shares of Dexter Co. stock for $70 per share less a $500 brokerage commission. Aug. 19 Purchased 600 shares of Dexter Co. stock for $65 per share plus a $300 brokerage commission. Nov. 14 Received dividends of $0.30 per share on Dexter Co. stock.
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