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	debit	credit
02-Feb		Shares	43200
		Brokerage	600
	To
		cash		43800
16-Mar		cash/bank	240
	To
		Dividend		240
07-Jun		Shares	42300
		Brokerage	450
	To
		Cash/bank		42750
26-Jul		bank/cash	74675
		brokerage	725
	To	Shares		75400
26-Jul		p&l		19000
	to
		profit on sale of shares	19000
		cost of shares=43800+11875(42750*250/900) 55675 1200+ 250 sale price 74675 profit/loss 74675 -55675 19000