Question

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.

Answer 1

Answer:

Yerbury Journal. $

Feb 2

Investment Wrong Dr 106,000

Brokerage Expenses Dr 110

Cash. CR. 106110

Purchase of Wrong share by cash

Mar 6

Cash Dr. 1590

Dividend Cr. 1590

Dividend received from Wrong

June 7

Investment Wrong Dr 31200

Brokerage Expenses Dr 120

Cash Cr. 31320

Purchase share from Wrong by cash

June 26

Cash Dr. 210,000

Investment Cr. 124,200

Profit Cr 85800

Sales of 5300 and 700 shares purchased from Wrong at$20&$26 respectively.

June 26

Brokerage exp Dr. 100

Cash. CR. 100

Brokerage paid on sales of Wrong shares

Sept 20

Cash Dr. 520

Dividend Cr. 520

Dividend received on share

Explanation: