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Brick Company had the following transactions and adjustment related to a stock (trading) investment. 2018 Nov. 18 Purchased 25,000 shares of Clay & Shale Company
Brick Company had the following transactions and adjustment related to a stock (trading) investment. 2018 Nov. 18 Purchased 25,000 shares of Clay & Shale Company common stock at $30 per share plus a brokerage commission of $5,000. Brick expects to sell the stock in the near future. Dec. 22 Received a cash dividend of $2.60 per share of common stock from Clay & Shale. 31 Made the adjusting entry to reflect year-end fair value of the stock investment in Clay & Shale. The year-end market price of the Clay & Shale common stock is $32 per share. 2019 Feb. 20 Sold all 25,000 shares of the Clay & Shale common stock for $866,000. 1. What is the name of the account and amount to be debited on November 18, the date of the initial purchase? 2. What is the name of the account and amount to be credited on December 22? 3. What is the name of the account to be debited, the name of the account to be credited and the amount on December 31? 4. The debit on February 20 is Cash for $866,000. What are the names and amounts of the two credits
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