Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

23) Vaughn Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1980 shares of Pearl Company (10%) for $50490 cash. June 1 Received

23) Vaughn Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1980 shares of Pearl Company (10%) for $50490 cash. June 1 Received cash dividends of $3 per share on Pearl stock. Oct. 1 Sold 1210 shares of Pearl stock for $32670. The entry to record the purchase of the Pearl stock would include a

credit to Cash for $45441.

debit to Stock Investments for $45441.

debit to Stock Investments for $50490.

debit to Investment Expense for $5049.

Coronado Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2200 shares of Pearl Company (10%) for $56100 cash. June 1 Received cash dividends of $3 per share on Pearl stock. Oct. 1 Sold 1180 shares of Pearl stock for $31860. The entry to record the receipt of the dividends on June 1 would include a

debit to Dividend Revenue for $6600.

debit to Stock Investments for $6600.

credit to Stock Investments for $6600.

credit to Dividend Revenue for $6600.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Ch 1-14

Authors: John Wild, Vernon Richardson, Ken Shaw

1st Edition

0073346896, 9780073346892

More Books

Students also viewed these Accounting questions

Question

What role(s) do you need to be developing for the future?

Answered: 1 week ago