Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 15, Problem 8E
To determine
Journalize the stock investment transactions in the books of Corporation Y.
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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 1,000 shares of Wong Inc. stock for $40 per share plus a $500 brokerage commission.
Mar. 16
Received dividends of $0.30 per share on Wong Inc. stock.
June 7
Purchased 700 shares of Wong Inc. stock for $49 per share plus a $350 brokerage commission.
July 26
Sold 1,200 shares of Wong Inc. stock for $53 per share less a $600 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.
Feb. 2
Investments-Wong Inc. Stock
fill in the blank 2…
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 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.Mar. 6. Received dividends of $0.30 per share on Wong Inc. stock.June 7. Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $120 brokerage commission.July 26. Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 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.
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.
Chapter 15 Solutions
Financial Accounting
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