Question 15.2: Stock Investment Transactions On September 1, 1,500 shares o...
Stock Investment Transactions On September 1, 1,500 shares of Monroe Company are acquired at a price of $24 per share plus a $40 brokerage commission. On October 14, a $0.60-per-share dividend was received on the Monroe Company stock. On November 11, 750 shares (half) of Monroe Company stock were sold for $20 per share less a $45 brokerage commission. Prepare the journal entries for the original purchase, dividend, and sale.
Sept. 1 Investments—Monroe Company Stock . . . . . . . . . . . . . . . . . . . . 36,040*
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,040
*(1,500 shares × $24 per share) + $40
Oct. 14 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 900*
Dividend Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900
*$0.60 per share × 1,500 shares
Nov. 11 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,955*
Loss on Sale of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,065
Investments—Monroe Company Stock . . . . . . . . . . . . . . . . 18,020**
*(750 shares × $20) – $45
**$36,040 × ½