Prepare journal entries for the following transactions for Beta Corp: 2/14/16 Be
ID: 2595054 • Letter: P
Question
Prepare journal entries for the following transactions for Beta Corp: 2/14/16 Beta purchased 1000 shares of Epsilon Company for $35 per share plus a $300 commission. Epsilon had total share outstanding of200,000. 4/1/16 Beta purchased 100 shares of Omega Company for $60 per share. On 12/31/16 Epsilon Company stock was trading at $30 per share. On 12/31/16 Omega Company stock was trading at $63 per share. On 3/17/17 the Epsilon stock was sold for $37 per share plus a $400 commission On 4/15/17 the Omega stock was sold for $56 per share ALL ENTRIES ARE FOR BETA, THE PURCHASER. 13. 2/14/16 purchase 14. 4/1/16 purchase 15 and 16. year end adjusting entries regarding Epsilon and OmegaExplanation / Answer
BETA CORP JOURNAL ENTRIES SL. NO. DATE PARTICULARS DEBIT ($) CREDIT ($) 1 2/14/2016 Investment in shares of Epsilon 35000 Commission 300 To Bank A/c 35300 (Being purchase of 1000 shares of Epsilon at $ 35/share and paid commission of $ 300) 2 4/1/2016 Investment in shares of Omega Company 6000 To Bank 6000 (Being purchase of 100 shares of Omega at $ 60/share) 3 YEAR END ADJUSTMENT ENTRIEES OF EPSILON AND OMEGA No entries 4 3/17/2017 Bank A/c 36600 Commission 400 To Investment in shares of Epsilon 35000 To Profit on sale of share sale 2000 (Being sale of Epsilon shares of 1000 @ $ 37/share and commission paid $ 400) 5 4/15/2017 Bank A/c 5600 Loss on sale of share sale 400 To Investment in shares of Omega Company 6000 (Being sale of Omega shares of 100 @ $ 56/share)