Feb. 24. Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commission.
May 16. Acquired 2,500 shares of Issacson Co. stock for $36 per share plus a $100 commission.
July 14. Sold 400 shares of Tett Co. stock for $100 per share less a $75 brokerage commission.
Aug. 12. Sold 750 shares of Issacson Co. stock for $32.50 per share less an $80 brokerage commission.
Oct. 31. Received dividends of $0.40 per share on Tett Co. stock.
Journalize the entries for these transactions.
Answer:
Feb. 24 Investments—Tett Co. Stock* 85,150
Cash 85,150
*(1,000 shares × $85) + $150
May 16 Investments—Issacson Co. Stock* 90,100
Cash 90,100
*(2,500 shares × $36) + $100
July 14 Cash* 39,925
Gain on Sale of Investments 5,865
Investments—Tett Co. Stock** 34,060
*(400 shares × $100) – $75
**400 shares × ($85,150 ÷ 1,000 shares)
Aug. 12 Cash* 24,295
Loss on Sale of Investments 2,735
Investments—Issacson Co. Stock** 27,030
*(750 shares × $32.50) – $80
**750 shares × ($90,100 ÷ 2,500 shares)
Oct. 31 Cash* 240
Dividend Revenue 240
*(1,000 shares – 400 shares) × $0.40