Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year:

Feb. 24 Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commission.
May 16 Acquired 2,500 shares of Issacson Co. stock for $36 per share plus a $100 commission.
July 14 Sold 400 shares of Tett Co. stock for $100 per share less a $75 brokerage commission.
Aug. 12 Sold 750 shares of Issacson Co. stock for $32.50 per share less an $80 brokerage commission.
Oct. 31 Received dividends of $0.40 per share on Tett Co. stock.

Required:
Journalize the entries for these transactions.

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Tundexi Tundexi · Answer 1 · 2020-08-12T02:29:25+02:00

Answer:

Date Account Titles and Explanation Debit$ Credit$

Feb 24. Investment - Company T 85,150

Cash {(1,000 * $85) + $150} 85.150

(To record the purchase of stock)

May 16 Investment - Company I 90,100

Cash{(2,500 * $36) + $100) 90,100

(To record the purchase of stock)

June 14 Cash{(400 * $100) - $75} 39,925

Investment {($85,150 * (400/1,000)} 34,060

Gain on sales of investment 5,865

(To record the sale of stock)

Aug 12. Cash {(750 * $32.50) - $80} 24,295

Loss on sale of investment 2,735

Investment {$90,100 * (750/1,500)} 27,030

(To record the sale of stock)

Oct 31 Cash ($0.4 * 600) 240

Dividend income 240

(To record dividend income)