Question

8. On May 15, 2018, Stacey Co. invests $10,000 in Dave, Inc. stock. Dave pays Stacey a $500 dividend on November 15, 2018. Stacey sells the Dave stock on December 10, 2018, for $9,400. Assume the Stacey Co. does not have significant influence over Dave, Inc. Journalize the 2018 transactions related to Stacey's investment in Dave stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Begin by journalizing Stacey's initial investment in Dave, Inc., stock on May 15, 2018. Date Accounts and Explanation Debit 2018 May 15 Debit Credit Next, journalize Stacey's receipt of the November 15, 2018 dividend. Date Accounts and Explanation 2018 Nov. 15 Debit Credit Now journalize Stacey's sale of the Dave, Inc., stock on December 10, 2018. Date Accounts and Explanation 2018 Dec. 10

Answer 1

Total stockholders equity
Common stock	$             32,000
(32000 shares *$1)
Paid in excess of capital	$         5,76,000
(32000 shares *$18)
Net income	$             71,000
Total stockholders equity	$         6,79,000
Correct Option: A.679000