The following equity investment transactions were completed by Vintage Company during a recent year:   Apr. 10 Purchased 4,000 shares of Delew Company’s common stock for a price of $52 per share plus a brokerage commission of $105. Delew Company has 240,000 shares of common stock outstanding. July 8 Received a quarterly dividend of $0.50 per share on the Delew Company investment. Sept. 10 Sold 1,200 shares for a price of $42 per share less a brokerage commission of $90. Dec. 31 At the end of the accounting period, the fair value of the remaining 2,800 shares of Delew Company’s stock was $51.53 per share. Required:   Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.   CHART OF ACCOUNTS   Vintage Company   General Ledger         ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Delew Company Stock 165 Valuation Allowance for Equity Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment   LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable   EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends   REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Delew Company 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments   EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Delew Company 731 Loss on Sale of Investments 741 Unrealized Loss on Equity Investments

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

The following equity investment transactions were completed by Vintage Company during a recent year:

 

Apr.

10

Purchased 4,000 shares of Delew Company’s common stock for a price of $52 per share plus a brokerage commission of $105. Delew Company has 240,000 shares of common stock outstanding.

July

8

Received a quarterly dividend of $0.50 per share on the Delew Company investment.

Sept.

10

Sold 1,200 shares for a price of $42 per share less a brokerage commission of $90.

Dec.

31

At the end of the accounting period, the fair value of the remaining 2,800 shares of Delew Company’s stock was $51.53 per share.

Required:

 

Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.

 

CHART OF ACCOUNTS

 

Vintage Company

 

General Ledger

 

 

 

 

ASSETS

110

Cash

111

Petty Cash

120

Accounts Receivable

121

Allowance for Doubtful Accounts

131

Notes Receivable

132

Interest Receivable

141

Merchandise Inventory

145

Office Supplies

146

Store Supplies

151

Prepaid Insurance

161

Investments-Delew Company Stock

165

Valuation Allowance for Equity Investments

166

Valuation Allowance for Available-for-Sale Investments

181

Land

191

Store Equipment

192

Accumulated Depreciation-Store Equipment

193

Office Equipment

194

Accumulated Depreciation-Office Equipment

 

LIABILITIES

210

Accounts Payable

221

Notes Payable

231

Interest Payable

241

Salaries Payable

251

Sales Tax Payable

 

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Treasury Stock

332

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

350

Unrealized Gain (Loss) on Available-for-Sale Investments

351

Cash Dividends

352

Stock Dividends

 

REVENUE

410

Sales

611

Interest Revenue

612

Dividend Revenue

621

Income of Delew Company

631

Gain on Sale of Investments

641

Unrealized Gain on Trading Investments

 

EXPENSES

511

Cost of Merchandise Sold

512

Bad Debt Expense

515

Credit Card Expense

516

Cash Short and Over

520

Salaries Expense

531

Advertising Expense

532

Delivery Expense

533

Repairs Expense

534

Selling Expenses

535

Rent Expense

536

Insurance Expense

537

Office Supplies Expense

538

Store Supplies Expense

561

Depreciation Expense-Store Equipment

562

Depreciation Expense-Office Equipment

590

Miscellaneous Expense

710

Interest Expense

721

Loss of Delew Company

731

Loss on Sale of Investments

741

Unrealized Loss on Equity Investments

Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every
line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate
calculations to two decimal places. When required, round final answers to the nearest dollar.
PAGE 10
ACCOUNTING EQUATION
JOURNAL
CREDIT
ASSETS
LIABILITIES
EQUITY
DATE
DESCRIPTION
POST. REF.
DEBIT
4.
8
Transcribed Image Text:Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar. PAGE 10 ACCOUNTING EQUATION JOURNAL CREDIT ASSETS LIABILITIES EQUITY DATE DESCRIPTION POST. REF. DEBIT 4. 8
Expert Solution
Introduction :

On April 10 : Investment in Delew Company stock

= ($ 52 * 4000 shares )+ $ 105

= $ 208105

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education