Question
Bonneau Corp has purchased 100 shares of Crossley Inc (this investment represents 10% of Crossley's outstanding stock). Bonneau pays $10 per share plus a brokerage
Bonneau Corp has purchased 100 shares of Crossley Inc (this investment represents 10% of Crossley's outstanding stock). Bonneau pays $10 per share plus a brokerage fee of $100. The journal to record this purchase would be:
Dr. Investment, 1,000 and Brokerage Fee 100; Cr. Cash 1,100
DR. Investment, 1,100; Cr. Cash, 1,100
Dr. Investment, 1,000; Cash 1,000
Dr. Cash, 1,000; Investment, 1,000
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Financial Accounting An International Introduction
Authors: David Alexander, Christopher Nobe
6th Edition
1292102993, 978-1292102993
