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On September 12, 3,600 shares of Aspen Company were acquired at a price of $57 p

ID: 2552382 • Letter: O

Question

On September 12, 3,600 shares of Aspen Company were acquired at a price of $57 per share plus a $180 brokerage commission. On October 15, a $1.2-per-share dividend was received on the Aspen stock. On November 10, 1,440 shares of the Aspen stock were sold for $52 per share less a $72 brokerage commission.

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.

Journalize the entries to record the original purchase, the dividend, and the sale under the cost method.

Sept. 12 - Purchase Oct. 15 - Dividend Nov. 10 - Sale

Explanation / Answer

12-Sep Investment in Aspen company stock 205380 =(3600*57)+180             Cash 205380 15-Oct Cash 4320 =3600*1.2           Dividend revenue 4320 10-Nov Cash 74808 =(1440*52)-72 Loss on sale of investments 7344          Investment in Aspen company stock 82152

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