Question

(12 points - 3 each) Hungh Company had the following transactions pertaining to short-term investments in equity securities. Jan. 1 June 1 Sept. 15 Purchased 1,500 shares of Antuni Company stock for $9,500 cash. Received cash dividends of $.40 per share on Antuni Company stock. Sold 375 shares of Antuni Company stock for $2,300 less brokerage fees of $100 Received cash dividends of $.80 per share on Antuni Company stock. Dec. 1 Instructions Prepare a journal entry for each of the transactions. Show dates.

Answer 1

Date pebit (reelt Accounts Es explanations shares Short-term investments in equily Settentries Janol 9500 9500 1500 Cash (Being requity seciminel purchased of for Investment purpose] 600 June. 600 cash dividend Revenue [Being cash Dividend on short-term Securines received Sept. 15 2200 175 cash Loss on sale of securities Short-term investment in equily shames (Being 375 equity shanes Sold) 2375 Decl Cash 900 Dividend Revenue 900 (Being cash dividend received). working Notes June 1 - Dividend Revenue- Dividenet per shame x No. of securities -0.40 × 1500 $ 600 Sept 15 cash received on Salls selling Price of Stone - Brockerage Feep - 2300- 100 $ 2200