Prepare journal entries to record the following transactions involving the short-term securities investments of Duke Co., all of which occurred during year 2013. a. On March 22, purchased 800 shares of RIP Company stock at $19 per share plus a $350 brokerage fee. These shares are categorized as trading securities.

Prepare journal entries to record the following transactions involving the short-term securities investments of Duke Co., all of which occurred during year 2013.

 

a.	On March 22, purchased 800 shares of RIP Company stock at $19 per share plus a $350 brokerage fee. These shares are categorized as trading securities.

b. On September 1, received a $3 per share cash dividend on the RIP Company stock purchased in transaction a.   c. On October 8, sold 400 shares of RIP Co. stock for $29 per share, less a $340 brokerage fee.   Explanation: a. Purchased 800 shares of stock for (800 × $19) + $350 brokerage fee = $15,550 b. Received dividend on stock (800 × $3) = $2,400 c. Sold 400 shares of stock. Cash = [(400 × $29) − $340] = $11,260 Short-term investments—trading (RIP) = ($15,550/2) = $7,775