An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale? a.$1,276 loss b.$2,204 loss c.$2,204 gain d.$1,276 gain

An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale? a.$1,276 loss b.$2,204 loss c.$2,204 gain d.$1,276 gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Accounting for the Equity Investment When Price Exceeds Book Value Assume an investor purchases all…

A: The investor has purchased all the shares of the investee company, therefore the Equity method is…

Q: The market value of Investee is $1,000,000. Investor owns 20% of Investee's common stock. Investee…

A: Under the equity method, the investment is initially recorded at historical cost, and adjustments…

Q: How much was the gain or loss on the sale of CD shares? a. P1,100 gain b. P2,000 gain c. P15,000…

A: Gain/Loss= Net Sales Consideration - Cost of Acquisition If the result is positive, there's a…

Q: a. A building with a book value of $415,000 was sold for $515,000. b. Additional common stock was…

A: Cash Flow Statement:— It is one of the financial statements that show changes in cash and cash…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Total cost include the purchase cost of shares and the commission charged. Total proceeds include…

Q: Assume that you have just purchased some shares in an investment company reporting $975 million in…

A: Net asset value (NAV) per share = (Total Assets - Liabilities) / Number of shares outstanding

Q: On 3/30/22 you purchased 1 share of Ford Motor company for $9. On 7/1/22 you received a dividend of…

A: The actual rate of return on an investment or a group of investments over a specified evaluation…

Q: A land developer declared a divident of 28 per share for the common stock. If the common stock…

A: Stock Yield shows the Return the Investor has Earned on the Stock which he is invested. The Current…

Q: ast year, you purchased 700 shares of Forever, Inc., stock at a price of $49.62 per share. You…

A: Information Provided: Purchase price = $34,734 (700 shares * $49.62) Dividends = $1050 Closing price…

Q: 6. To acquire Gaines Corporation stock, Palmer Co. pays $61,500 in cash. What entry should be made…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the…

Q: ou purchased 850 shares of Sea Inc. common stock one year ago for $47 per share. You received a…

A: Purchase price (PP) = $47 Dividend (D) = $1.35 Sale price (SP) = $52.50 Holding period return = ?

Q: 7. At the beginning of the year, you purchased a share of stock for $31.25. Over the year the…

A: Part A- Return (In %) when price at end is $30 is amounting to 4.8% Part B- Return (In %) when price…

Q: Calculate the net asset value (in $) and number of shares purchased for the mutual fund. Round…

A: NET ASSETS VALUE Net Asset Value (NAV) of a Mutual Fund (MF) Scheme is the Market Value per unit of…

Q: Accounting for the Equity Investment When Price Exceeds Book Value Assume an investor purchases all…

A: Using the journalizing technique in accounting, all business transactions are recorded in the…

Q: arvis bought a share of stock for $18.75 that paid a dividend of $.45 and sold three months later…

A: Sell Price = $18.65 Purchase Price = $18.75 Dividend =$0.45

Q: 5000 shares of stock were purchased at $25 per share with a 5% broker commission. The following…

A: a) Computation of Cost of Investment:

Q: You purchased a share of stock for $120. One year later, you received $1.82 as a dividend and sold…

A: Holding period return (HPR) is the return that is earned on the asset by holding it over a period of…

Q: Preferred stockholders A. are guaranteed to receive an annual dividend payment O B. are guaranteed…

A: The correct answer to the question is "C. Receive a dividend preference over common…

Q: A company received dividends of $0.35 per share on 300 shares of stock it holds as a stock…

A: Introduction: A journal entry is used to record a business transaction in the accounting records of…

Q: Tom bought a stock at $62.97 per share and sold it a year later for $75.28 per share. During the…

A: Given: Dividend = $2.65 Purchase price = $62.97 Sale price = $75.28

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Commission in this stock market transaction is lived on both buying and selling. Here Total cost…

Q: You purchased a share of ASX Limited at a price of $75.75 one year ago today. If you sell the share…

A: The total gain on selling the stock is: $89.00 - $75.75 i.e $13.25 The rate of return for the same…

Q: 4. An owner of 2,500 shares of Simmons Company common stock receives a stock dividend of 50 shares.…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: If an investor purchased 150 shares of Sunoco stock at $83.43 and the brokers commision was 2.5%,…

A: Stock exchange is a group of broker hence all the stocks that are bought and sold through stocks are…

Q: ul1 Purchased for cash 8,000 shares of Wang, Inc stock for $20 each plus a $800 brokerage fee. ug 3…

A: Investment in shares means buying the stock of a company from the open market. These stocks are…

Q: Sports International purchased 1,600 shares of stock in The Gaming Warehouse for $20 per share. The…

A: Equity method is used in accounting for investment, when percentage of investment is more than 20%…

Q: Subject : - Finanace An investor bought 10 shares of stock T for $800 per share. One year…

A: Total number of shares=10The purchase price per share=$800Sale price per share=$575Require:Return on…

Q: Last year, you purchased 520 shares of Forever, Incorporated, stock at a price of $45.66 per share.…

A: In this question, we are required to determine the capital gains yield.

Q: you purchased 500 shares of WMT stock on November 15, 2020, for $150.54. You sold the 500 shares on…

A: Purchase WMT Stock @ $150.54 Sold Stock @ $143.60 Dividend Yield = 1.462% DIVIDEND YIELD = Dividend…

Q: A corporation purchases 5,000 shares of its own $2 par common stock, originally issued at par, for…

A: Cash flows statement is the statement prepared to shows the cash movement in the organisation by…

Q: Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays…

A: The journal entries are prepared to record the transactions on regular basis. The dividend received…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Purchase cost of buying Stock :— It is calculate by adding all the cost paid for the acquisition of…

Q: An investor purchased 100 shares of Mallard common stock at $20 per share on March 15 of Year 1. On…

A: Journalizing is one of the most important and basic processes in the accounting cycle. Journalizing…

Q: Calculate the Capital Gain/Loss on 100 shares of the stock

A: The capital gain or loss occurs when the investor either receives an appreciation in invested amount…

Q: An investor purchased 50 shares of stock in a company for $600. One year later, the investor sold…

A: purchase price = $600 selling price = $13 shares = 50 total selling price = $13 x 50 = $650

Q: Assume you purchased 200 shares of GE common stock on margin at $100/share using 40% margin. How…

A: Solution:- In equity market, margin means the amount of money borrowed from the broker in order to…

Q: ains or loss of the investment of C for 100 shares with par value of P5 at the beginning of the…

A: Loss or gains are realized when you purchase and sell shares in the market.

Q: An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares…

A: The objective of the question is to calculate the gain or loss on the sale of 100 shares of common…

Question

An investor purchased 567 shares of common stock, $23 par, for $23,814. Subsequently, 116 shares were sold for $31 per share. What is the amount of gain or loss on the sale?

a.$1,276 loss

b.$2,204 loss

c.$2,204 gain

d.$1,276 gain

Expert Solution

Step 1

Sale proceeds of shares	116 shares*$31 per share	3596
Less: Cost of shares	(23814*116)/567	4872
Loss on sale		-1276

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00
Assessing Financial Statement Effects of Equity Method SecuritiesUse the financial statement effects template to record the following transactions involving investments in marketable securities accounted for using the equity method.a. Purchased 12,000 common shares of Bakersfield Co. at $10 per share; the shares represent 30% ownership in Bakersfield.b. Received a cash dividend of $1.50 per common share from Bakersfield.c. Bakersfield reported annual net income of $75,000.d. Sold all 12,000 common shares of Bakersfield for $128,500.Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income a. Purchased shares of Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer b. Received cash dividend from Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer c.…
Aisha Knox paid a total of $1,500 for 75 shares of stock. He sold the stock for $22.50 a share and paid a sales commission of $49.00. What is the profit or loss from the sale?
An investor purchased 50 shares of stock in a company for $1,600. One year later, the investor sold all 50 shares for $1,500. What is the investor's rate of return? A. -6.7% B. 6.7% C. -6.3% D. 6.3%
solve correct
You purchased 1,150 shares of stock in Natural Chicken Wings, Incorporated, at a price of $43.46 per share. Since you purchased the stock, you have received dividends of $1.01 per share. Today, you sold your stock at a price of $46.71 per share. What was your total percentage return on this investment? Multiple Choice 7.48% 8.64% 9.80% 10.46% 11.15%
During 2021, Scott Peterson purchased 275 shares of common stock issued by true state manufacturing for $13,800 including commission. Later in the same year, Scott sold the shares for 14,000 after commission. Calculate the following: 1. Profit on this stock transaction 2. Percentage return on investment %
"Page 1 6 Record the necessary journal entry for the issuance of common stock. General Journal DR CR 7 Record the repurchase of common stock. General Journal DR CR 8 Record $50,000 in cash dividends declared. General Journal DR CR 9 Record the $50,000 cash dividends that have now been paid. General Journal DR CR 10 Assume and record a property dividend of inventory valued at $75,000 declared and paid. General Journal DR CR 11 Assume a common stock dividend declared of 19% of shares outstanding. Market at $12 per share. General Journal DR CR 12 Assume a common stock dividend declared of 35% of shares outstanding. General Journal DR CR
You purchased a share of stock for Rs 250. One year later you received Rs 5 as dividend and sold the share for Rs 320. Holding period return would be a. 12 percent b. 21 percent c. 30 percent d. 54 percent
You purchased 500 shares of stock at $27.00 per share. Later that stock paid a $3.00 per share dividend. What was your return for the year? purchased 500 shares of stock Per share 27,00 Later the stock paid 3.00
An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
Equity method journal entries (price equals book value) Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor purchases 14,400 common shares of an investee at $16 per share; the shares represent 25% ownership in the investee and the investor concludes that it can exert significant influence over the investee. b. The investee reports net income of $172,800. c. The investor receives a cash dividend of $1.50 per common share from the investee. d. The investor sells all 14,400 common shares of the investee for $260,280. General Journal Ref. Description Debit Credit a. b. C. d. Equity investment