MD-7 Recording the Purchase and Sale of a Passive Investment Rocktown Corporatio
ID: 2536328 • Letter: M
Question
MD-7 Recording the Purchase and Sale of a Passive Investment Rocktown Corporation bought 660 shares of General Eccentric stock on March 20 for its trading securities portfolio at $35 per share. Rocktown sold the stock at $39 per share on June 23. Prepare the journal entries to record the transactions on each of these dates, assuming that the investment had not yet been adjusted to fair value (that is, the investment was still recorded at cost at the time of sale). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Explanation / Answer
Prepare the journal entries to record the transactions on each of these dates
Date accounts & explanation debit credit Mar 20 Investment in trading securities (660*35) 23100 Cash 23100 (To record investment) June 23 Cash (660*39) 25740 Gain on sale of stock 2640 Investment in trading securities 23100 (To record Sale of stock)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.