Need help getting through this journal entries/the last question Dossett Company
ID: 2364075 • Letter: N
Question
Need help getting through this journal entries/the last question
Dossett Company had the following transactions pertaining to stock investments. Feb. 1 Purchased600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200. July 1 Received cash dividends of $1 per share on Goetz common stock. Sept. 1 Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100. Dec. 1 Received cash dividends of $1 per share on Goetz common stock. Instructions Journalize the transactions. (For multiple debit/credit entries, list amounts from largest to smallest e. g. 10, 5, 3, 2. ) Dividend revenue and the gain on sale of stock investments are reported under in the income statement.Explanation / Answer
Feb. 1 Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200.
Dr stock investments $6,200
Cr Cash $6,200
July 1 Received cash dividends of $1 per share on Goetz common stock.
Dr Cash $600
Cr Dividend revenue $600
Sept. 1 Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100.
Dr Cash $4,300
Cr stock investments $3,100 (half of $6,200 since 300 shares is half of 600 shares)
Cr Gain on sale of stock investment $1,200
Dec. 1 Received cash dividends of $1 per share on Goetz common stock.
Dr Cash $300
Cr Dividend revenue $300
Dividend revenue and the gain on sale of stock investments are reported under other gains and revenues in the statement of comprehensive income (or income statement)