Answered: Prepare entries to record the purchase,…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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On June 1, 2019 Wanda Company purchased 4,200 shares of Vision Company capital stock as a temporary investment (trading securities) at $86.50 per share plus a commission of $62. On June 15, a 5 per cent stock dividend was received. Wanda received a cash dividend of $0.75 per share on August 13, 2019. On November 1, Wanda sold all of the shares for $92.20 per share, less a commission of $62. Prepare entries to record the purchase, cash dividend, and sale of these transactions in Wanda Company’s accounts.

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