Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 15, Problem 2PEB
To determine
Journalize the stock investment transactions under the cost method.
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On January 23, 16,000 shares of Tolle Company are acquired at a price of $24 per share plus a $160 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Tolle Company stock. On June 10, 6,400 shares of the Tolle Company stock were sold for $32 per share less a $100 brokerage commission.
Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
On September 12, 2,600 shares of Aspen Company are acquired at a price of $48.00 per share plus a $130 brokerage commission. On October 15, a $1.00-per-share dividend was received on the Aspen Company stock. On November 10, 1,040.00 shares of the Aspen Company stock were sold for $43 per share less a $52 brokerage commission.
When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.
Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.
Sept. 12
Investments-Aspen Company Stock
fill in the blank 2
Cash
fill in the blank 4
Oct. 15
Cash
fill in the blank 6
fill in the blank 8
Nov. 10
fill in the blank 10
fill in the blank 11
fill in the blank 13
fill in the blank 14
Instructions
On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145
brokerage commission. On April 12, a $0.30-per-share dividend was received on the Tolle Company stock.
On June 10, 6,200 shares of the Tolle Company stock were sold for $34 per share less a $130 brokerage
commission.
Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.
Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to
the nearest dollar.
Chapter 15 Solutions
Financial Accounting
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Ch. 15.MJ - IFRS Activity 1
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