Asked by caglar gokbulut on May 22, 2024
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On February 1 Brutus Company purchased 1000 shares (2% ownership) of Wynne Company common stock for $25 per share. On March 20 Brutus Company sold 200 shares of Wynne stock for $4700. Brutus received a dividend of $1.20 per share on April 25. On June 15 Marcus sold 300 shares of Wynne stock for $8500.
Instructions
Prepare the journal entries to record the transactions described above.
Common Stock
A type of equity security that represents ownership in a corporation, with rights to share in its profits through dividends and capital appreciation.
Sold Shares
Refers to the act of transferring ownership in a corporation's stock from one party to another in exchange for money or other compensation.
Dividend
A portion of a company's earnings that is distributed to shareholders as a return on their investment.
- Learn the methodology of accounting and making journal entries for the purchase of equity and debt instruments.
- Comprehend the consequences of liquidating portions of investments, inclusive of computing gains and losses.
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Learning Objectives
- Learn the methodology of accounting and making journal entries for the purchase of equity and debt instruments.
- Comprehend the consequences of liquidating portions of investments, inclusive of computing gains and losses.
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