On February 1, Minitori Company purchased 200 shares (2% ownership) of
Becker Company common stock for $30 per share plus brokerage fees of
$420. On March 20, Minitori Company sold 40 shares of Becker stock for
$1,160, less a $31 brokerage fee. Minitori received a dividend of $2 per
share on April 25. On June 15, Minitori sold 80 shares of Becker stock
for $2,960, less a $51 brokerage fee. On July 28, Minitori received a
dividend of $3 per share.
Prepare the journal entries to record the transactions described above.
Explanation
Prepare the journal entries to record the transactions described above.
Explanation
February 1 | Cash | = | [(200 x $30) + $420] | = | $6,420 | |
March 20 | Cash | = | ($1,160 – $31) | = | $1,129 | |
Stock Investments | = | ($6,420 x 40/200) | = | $1,284 | ||
April 25 | Cash | = | (160 x $2) | = | $320 | |
June 15 | Cash | = | ($2,960 – $51) | = | $2,909 | |
Stock Investments | = | ($6,420 x 80/200) | = | $2,568 | ||
July 28 | Cash | = | (80 x $3) | = | $240 |
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