Question

Mar. 16 Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 1,200 shares of Wong Inc. stock for $36 per share plus a $600 brokerage commission. Received dividends of $0.20 per share on Wong Inc. stock. June 7 Purchased 900 shares of Wong Inc. stock for $47 per share plus a $450 brokerage commission. July 26 Sold 1,450 shares of Wong Inc. stock for $52 per share less a $725 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 per share on Wong Inc. stock. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 2 a Mar. 16 June 7 II III July 26 Sept. 25

Answer 1

Date	Particulars	Amount(Dr.)	Amount(Cr.)
2 Feb	Investment In wrong Inc A/c Dr. To Cash	43800	43800
16 March	Cash A/c Dr. To Dividend Recieved	240	240
7 June	Investment in Wrong Inc A/c Dr. To Cash	42750	42750
26 July	Cash A/c Dr. To Shares of Wrong Inc To Profit on sale	74675	59760 14915
25 Sept	Cash A/c Dr. To Dividend income	195	195