Yerbury Corp. manufactures construction equipment. Journalize the entries to rec
ID: 341689 • Letter: Y
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.
Chart of Accounts
Journal
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar..
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JOURNAL
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Feb. 2 Purchased for cash 5,100 shares of Wong Inc. stock for $18 per share plus a $110 brokerage commission. Mar. 6 Received dividends of $0.35 per share on Wong Inc. stock. June 7 Purchased 2,000 shares of Wong Inc. stock for $25 per share plus a $130 brokerage commission. July 26 Sold 6,200 shares of Wong Inc. stock for $36 per share less a $110 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.50 per share on Wong Inc. stock.Explanation / Answer
Solution:
Journal Entries - Yerbury Corp. Date Particulars Debit Credit 2-Feb Investment - Wong Inc. Stock Dr (5100*$18 + $110) $91,910.00 To Cash $91,910.00 (Being investment made in Wong Inc stock) 6-Mar Cash Dr $1,785.00 To Dividend Revenue (5100*$0.35) $1,785.00 (Being dividend received on Wong Inc stock) 7-Jun Investment - Wong Inc. Stock Dr (2000*$25 + $130) $50,130.00 To Cash $50,130.00 (Being investment made in Wong Inc stock) 26-Jul Cash Dr (6200*$36 - $110) $223,090.00 To Investment - Wong Inc. Stock [$91,910 + ($50,130*1100/2000)] $119,481.50 To Gain on sales of investment $103,608.50 25-Sep Cash Dr $450.00 To Dividend Revenue (900*$0.50) $450.00 (Being dividend received on Wong Inc stock)Related Questions
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