Question

The following equity investment transactions were completed by Romero Company during a recent year:

Apr. 10.	Purchased 3,200 shares of Dixon Company for a price of $57.75 per share plus a brokerage commission of $800.
July 8.	Received a quarterly dividend of $0.35 per share on the Dixon Company investment.
Sept. 10.	Sold 2,100 shares for a price of $52 per share less a brokerage commission of $450.

Journalize the entries for these transactions. If required, round the final answers to the nearest dollar.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Apr. 10 - Purchase
July 8 - Dividend
Sept. 10 - Sale

Answer 1

For a compound transaction, if an amount box does not require an entry, leave it blank.

Apr. 10 - Purchase	Investment in shares (3200*57.75+800)	185600
	Cash		185600
July 8 - Dividend	Cash (3200*.35)	1120
	Dividend revenue		1120
Sept. 10 - Sale	Cash (2100*52-450)	108750
	Loss on sale of investment	13050
	Investment in shares (185600/3200*2100)		121800