On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary investment (trading securities) at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.60 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in Tam Company’s accounts.
On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary investment (trading securities) at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.60 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in Tam Company’s accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary investment (trading securities) at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.60 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in Tam Company’s accounts.
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