On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 shares issued. Red Corp. stock was worth $32 a shares. Solo Company also had to pay brokerage fees of 2% of the purchase price. For the year ending December 31, 20X1, Red Corp. earned net income of $240,000 and paid a total dividend of $3,000 to its shareholders. Solo Company really needed some cash, so on March 15, 20X2, it sold 100 shares of Red Corp. stock for $28 a share. Prepare the journal entry for the following dates (show all work): a. February 2, 20X1 b. December 31, 20X1 C. March 15, 20X2

On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 shares issued. Red Corp. stock was worth $32 a shares. Solo Company also had to pay brokerage fees of 2% of the purchase price. For the year ending December 31, 20X1, Red Corp. earned net income of $240,000 and paid a total dividend of $3,000 to its shareholders. Solo Company really needed some cash, so on March 15, 20X2, it sold 100 shares of Red Corp. stock for $28 a share. Prepare the journal entry for the following dates (show all work): a. February 2, 20X1 b. December 31, 20X1 C. March 15, 20X2

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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