On February 12, Addison, Inc., purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee.Journalize the entries for the original purchase, dividend, and sale. If an amount box does not require an entry, leave it blank.
On February 12, Addison, Inc., purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee.Journalize the entries for the original purchase, dividend, and sale. If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On February 12, Addison, Inc., purchased 6,000 shares of Lucas Company at $22 per share plus a $240
brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22,
Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28
per share less a $160 brokerage fee. Journalize the entries for the original purchase, dividend, and sale. If
an amount box does not require an entry, leave it blank.
Feb.
12
Aug.
22
Nov.
10
CashDividend RevenueGain on Sale of InvestmentsInvestments-Lucas Company
StockLoss on Sale of Investments
CashDividend RevenueGain on Sale of InvestmentsInvestments-Lucas Company
StockLoss on Sale of Investments
CashDividend RevenueGain on Sale of InvestmentsInvestments-Lucas Company
StockLoss on Sale of Investments
CashDividend RevenueGain on Sale of InvestmentsInvestments-Lucas Company
StockLoss on Sale of Investments
CashDividend RevenueGain on Sale of InvestmentsInvestments-Lucas Company
StockLoss on Sale of Investments
CashDividend Revenue Dividends PayableGain on Sale of InvestmentsLoss on Sale of
Investments
CashDividends Payablelnvestments-Lucas Company StockLoss on Sale of
InvestmentsSupplies
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