Yerbury Corp. manufactures construction equipment. Journalize the entries to rec

Question

Yerbury Corp. manufactures construction equipment.

Journalize the entries to record the following selected equity investment transactions completed by Yerbury during 2016. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

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 $125 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.

Explanation / Answer

Journal Entries Date Account Title Debit Credit 'Feb-02 Investment in shares of Wong Inc. $1,06,110.00 Cash $1,06,110.00 (5300 shares purchased @ $20 per share and brokerage commission of $110 added in cost) 'Mar-06 Cash $1,590.00 Dividend from Wong Inc. $1,590.00 (Received dividend @ $0.30 per share from Wong Inc.) 'Jun-07 Investment in shares of Wong Inc. $52,125.00 Cash $52,125.00 (2000 shares purchased @ $26 per share and brokerage commission of $125 added in cost) 'July-26 Cash $2,09,900.00 Investment in shares of Wong Inc. $1,24,353.75 Gain on sale of shares $85,546.25 (6000 shares of Wong Inc sold @ $35 per share less commission of $100) 'Sep-25 Cash $520.00 Dividend from Wong Inc. $520.00 (Received dividend @ $0.40 per share from Wong Inc. on 1300 shares)

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