Question

Exercise 16-06 On February 1, Cullumber Company purchased 280 shares (2% ownership) of Givens Company common stock for $32 per share. On March 20, Cullumber Company sold 56 shares of Givens stock for $1,624. Cullumber received a dividend of $3.00 per share on April 25. On June 15, Cullumber sold 112 shares of Givens stock for $4,256. On July 28, Cullumber received a dividend of $1.75 per share. Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

B D Α 1 Date 1-Feb Particulars Investment in Shares Cash C D Debit($) Credit($) 89601 8960 20-Mar Cash Loss on Sale of Share Investment in Shares 1624 168) 1792 672 25-Apr Cash Dividend Received 15-Jun 4256 Cash Investment in Shares Profit on Sale of Share 3584 672 28-Jul 196 Cash Dividend Received 196

Credit($) 1 Date 2 43862 Particulars Investment in Shares Cash Debit($) =280*32 8960 43910 Cash 1624 =D7-C5 covou Loss on Sale of Share Investment in Shares =56*32 943946 Cash =224*3 Dividend Received 1672 11 12 43997 4256 Cash Investment in Shares Profit on Sale of Share =112*32 =C12-D13 44040 =112*1.75 Cash Dividend Received 17 196 18 19