Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The stock is purchased for $40 a share plus brokerage fees of $425. Which of the following is the correct entry for the purchase? Cash $8,000 Investments - Harolds Company Stock $8,000 Investments – Harolds Company Stock $8,425 Cask $8,425 Investments - Harolds Company Stock $8,000 Brokerage Fee Expense 425 Cash $8,425 ROCK Investments – Harolds Company Stock %8,000 Cash $8,000
Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The stock is purchased for $40 a share plus brokerage fees of $425. Which of the following is the correct entry for the purchase? Cash $8,000 Investments - Harolds Company Stock $8,000 Investments – Harolds Company Stock $8,425 Cask $8,425 Investments - Harolds Company Stock $8,000 Brokerage Fee Expense 425 Cash $8,425 ROCK Investments – Harolds Company Stock %8,000 Cash $8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The
stock is purchased for $40 a share plus brokerage fees of $425. Which of the following is the
correct entry for the purchase?
- Cash $8,000
Investments - Harolds Company Stock $8,000
- Investments – Harolds Company Stock $8,425
Cask $8,425
- Investments - Harolds Company Stock $8,000
Brokerage Fee Expense 425
Cash $8,425
- ROCK Investments – Harolds Company Stock %8,000
Cash $8,000
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