Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 15, Problem 7E
To determine
Journalize the stock investment transactions in the books of Company C.
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The following equity investment transactions were completed by Romero Company during a recent year:Apr. 10. Purchased 5,000 shares of Dixon Company for a price of $25 per share plus a brokerage commission of $75.July 8. Received a quarterly dividend of $0.60 per share on the Dixon Company investment.Sept. 10. Sold 2,000 shares for a price of $22 per share less a brokerage commission of $120.Journalize the entries for these transactions.
The following equity investment transactions were completed by Romero Company during a recent year:
Apr.
10
Purchased 5,000 shares of Dixon Company for a price of $25 per share plus a brokerage commission of $75.
July
8
Received a quarterly dividend of $0.60 per share on the Dixon Company investment.
Sept.
10
Sold 2,000 shares for a price of $22 per share less a brokerage commission of $120.
Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles.
The following equity investment transactions were completed by Vintage Company during a recent year:
Apr.
10.
Purchased 2,300 shares of Delew Company’s common stock for a price of $49.85 per share plus a brokerage commission of $345. Delew Company has 260,000 shares of common stock outstanding.
July
8.
Received a quarterly dividend of $0.25 per share on the Delew Company investment.
Sept.
10.
Sold 1,500 shares for a price of $45 per share less a brokerage commission of $190.
Dec.
31.
At the end of the accounting period, the fair value of the remaining 800 shares of Delew Company’s stock was $49.50 per share.
Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.
Apr. 10 - Purchase
Investments-Delew Company Stock
Cash
July 8 - Dividend
Cash
Dividend Revenue
Sept. 10 - Sale
Cash
Loss on Sale of Investments…
Chapter 15 Solutions
Financial Accounting
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