May 15, 2016, Stacey Co invests $17,000 in Jazz, Inc. stock. Jazz pays Stacey a

Question

May 15, 2016, Stacey Co invests $17,000 in Jazz, Inc. stock. Jazz pays Stacey a $900 dividend on November 15, 2016. Stacey sells the Jazz stock on December , for $16,850. Assume the investment is categorized as long-term available-for-sale. Journalize the 2016 transactions related to Stacey's investment in Jazz stock (R ts frst, then credits. Select the explanation on the last line of the journal entry table.) gin by journalizing Stacey's initial investment in Jazz, Inc, stock on May 15, 2016 Date Accounts and Explanation Debit Credit ay 15, 2016 Next, journalize Stacey's receipt of the November 15, 2016 dvidend Date Accounts and Explanation Debit Credit Nov. 15, 2016 Now journalize Stacey's sale of the Jazz, Inc., stock on December 10,2016 Date Accounts and Explanation Debit Credit Dec. 10, 2016 Choose from any ist or onter any namber in the input Rlalds and then continue to the noxt question

Explanation / Answer

To record the investment made Date Account Title Debit Credit May 15, 2016 Investments 17000 Cash 17000 To record the receipt of dividend from Jazz Inc. Investment Date Account Title Debit Credit Nov.15,2016 Cash 900 Dividend Income 900 To record the sale of Jazz Inc. Investment Date Account Title Debit Credit Dec.10 , 2016 Cash 16850 Loss on sale of investments 150 Investments 17000

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