Journalism February 10, 15,000 shares of sting company are acquired at a price o

Question

Journalism February 10, 15,000 shares of sting company are acquired at a price of $25 per share plus a $150 brokage commission. On April 12, $0.40-per share dividend was received on the sting company stock On may 29, 6,000 shares of sting company were sold for $32per share less a $120 brokerage commission Journalism February 10, 15,000 shares of sting company are acquired at a price of $25 per share plus a $150 brokage commission. On April 12, $0.40-per share dividend was received on the sting company stock On may 29, 6,000 shares of sting company were sold for $32per share less a $120 brokerage commission

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Feb 10 Investment in Sting company (15000*25+150) 375150      Cash 375150 (To record investment) Apr 12 Cash (15000*.40) 6000     Dividend revenue 6000 (To record dividend) May 29 Cash (6000*32-120) 191880     Gain on sale of sting company share 41820     Investment in Sting company (375150/15000*6000) 150060 (To record Sale of share)

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