st e\'s oting Westbrook Financial Services, Inc. invested $15,000 to acquire 7.2

Question

st e's oting Westbrook Financial Services, Inc. invested $15,000 to acquire 7.250 shares of Cloud Investments, Inc. on March 15 stock. On May 7,2018, Westbrook Financial Services, Inc. sells 2.250 shares for , 2015 This investment represents less than 20% of the i 12.250. Which of the following will be the correct joumal entry for the May 7, 2018 transaction? (Round any to two decimal places, and your final answer to the nearest dolar.) O A. Cash O B. Cash Gain on Disposal C. Loss on Disposal 12,250 O D. Cash Equity Investments

Explanation / Answer

Solution: Dr. Cash $12250

Cr. Equity investment $4,657

Cr. Ggain on disposal $7,593

Working:

15,000 / 7250 = 2.07; 2.07 * 2250 = 4655

Total value of 2,000 shares at the selling time 12,250
Gain on Disposal $7595

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.