Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
Feb. | 2 | Purchased for cash 5,000 shares of Wong Inc. stock for $20 per share plus a $115 brokerage commission. |
Mar. | 6 | Received dividends of $0.25 per share on Wong Inc. stock. |
June | 7 | Purchased 2,000 shares of Wong Inc. stock for $28 per share plus a $110 brokerage commission. |
July | 26 | Sold 6,100 shares of Wong Inc. stock for $37 per share less a $115 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. |
Sept. | 25 | Received dividends of $0.45 per share on Wong Inc. stock. |
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Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
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JOURNAL
ACCOUNTING EQUATION
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Journal entry
Date | Description | Post ref | Debit | credit | Assets | Liabilities | Equity | |
1 | Feb 2 | Investments-Wong Inc. Stock (5000*20+115) | 100115 | 100115 | ||||
Cash | 100115 | -100115 | ||||||
(To record investment) | ||||||||
Mar 6 | Cash (5000*.25) | 1250 | 1250 | |||||
Dividend revenue | 1250 | 1250 | ||||||
(To record dividend) | ||||||||
June 7 | Investments-Wong Inc. Stock (2000*28+110) | 56110 | 56110 | |||||
Cash | 56110 | -56110 | ||||||
(To record investment) | ||||||||
Jul 26 | Cash (6100*37-115) | 225585 | 225585 | |||||
Gain on Sale of Investments | 94609 | 94609 | ||||||
Investments-Wong Inc. Stock (56110/2000*1100+100115) | 130976 | -130976 | ||||||
(To record sale of investment) | ||||||||
Sep 25 | Cash (900*.45) | 405 | 405 | |||||
Dividend revenue | 405 | 405 | ||||||
(To record dividend) | ||||||||
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