Feb. 8. Purchased 2,400 shares of Tybee Company for a price of $62 per share plus a brokerage commission of $120.
Apr. 22. Received a quarterly dividend of $0.60 per share on the Tybee Company investment.
May 26. Sold 1,000 shares for a price of $52 per share less a brokerage commission of $60.
Journalize the entries for these transactions.
Answer:
Feb. 8 Investments—Tybee Company Stock* 148,920
Cash 148,920
*(2,400 shares × $62.00) + $120
Apr. 22 Cash* 1,440
Dividend Revenue 1,440
*$0.60 per share × 2,400 shares
May 26 Cash* 51,940
Loss on Sale of Investments 10,110
Investments—Tybee Company Stock** 62,050
*(1,000 shares × $52.00) – $60
**1,000 shares × ($148,920 ÷ 2,400 shares)