Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 2,000 shares of Tett Co. stock for $80 per share plus a $200 brokerage commission. May 16 Acquired 2,000 shares of Issacson Co. stock for $40 per share plus a $100 commission. July 14 Sold 500 shares of Tett Co. stock for $100 per share less a $50 brokerage commission. Aug. 12 Sold 1,000 shares of Issacson Co. stock for $34 per share less an $80 brokerage commission. Oct. 31 Received dividends of $0.30 per share on Tett Co. stock. Journalize the entries for these transactions under the fair value method. If an amount box does not require an entry, leave it blank. Feb. 24 Investments-Tett Co. Stock fill in the blank 2 fill in the blank 3 Cash fill in the blank 5 fill in the blank 6 May 16 Investments-Issacson Co. Stock fill in the blank 8 fill in the blank 9 Cash fill in the blank 11 fill in the blank 12 July 14 Cash fill in the blank 14 fill in the blank 15 Gain on Sale of Investments fill in the blank 17 fill in the blank 18 Investments-Tett Co. Stock fill in the blank 20 fill in the blank 21 Aug. 12 Cash fill in the blank 23 fill in the blank 24 Loss on Sale of Investments fill in the blank 26 fill in the blank 27 Investments-Issacson Co. Stock fill in the blank 29 fill in the blank 30 Oct. 31 Cash fill in the blank 32 fill in the blank 33 Dividend Revenue fill in the blank 35 fill in the blank 36 Feedback When recording the purchase of the investment, consider the amount of the brokerage commission. When recording the cash received, consider the commission. To complete the entry determine and gain or loss to be recorded. Record the revenue earned. Remember to update the number of shares of remaining.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Stock Investments, Dividends, and Sale of Stock

Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year:

Feb. 24	Acquired 2,000 shares of Tett Co. stock for $80 per share plus a $200 brokerage commission.
May 16	Acquired 2,000 shares of Issacson Co. stock for $40 per share plus a $100 commission.
July 14	Sold 500 shares of Tett Co. stock for $100 per share less a $50 brokerage commission.
Aug. 12	Sold 1,000 shares of Issacson Co. stock for $34 per share less an $80 brokerage commission.
Oct. 31	Received dividends of $0.30 per share on Tett Co. stock.

Journalize the entries for these transactions under the fair value method.

If an amount box does not require an entry, leave it blank.

Feb. 24	Investments-Tett Co. Stock	fill in the blank 2	fill in the blank 3
	Cash	fill in the blank 5	fill in the blank 6
May 16	Investments-Issacson Co. Stock	fill in the blank 8	fill in the blank 9
	Cash	fill in the blank 11	fill in the blank 12
July 14	Cash	fill in the blank 14	fill in the blank 15
	Gain on Sale of Investments	fill in the blank 17	fill in the blank 18
	Investments-Tett Co. Stock	fill in the blank 20	fill in the blank 21
Aug. 12	Cash	fill in the blank 23	fill in the blank 24
	Loss on Sale of Investments	fill in the blank 26	fill in the blank 27
	Investments-Issacson Co. Stock	fill in the blank 29	fill in the blank 30
Oct. 31	Cash	fill in the blank 32	fill in the blank 33
	Dividend Revenue	fill in the blank 35	fill in the blank 36

Feedback

When recording the purchase of the investment, consider the amount of the brokerage commission.

When recording the cash received, consider the commission. To complete the entry determine and gain or loss to be recorded.

Record the revenue earned. Remember to update the number of shares of remaining.

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