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Continious question, will give good rating Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were
Continious question, will give good rating
Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 700 shares of Tett Co. stock for $108 per share plus a $287 brokerage commission. Acquired 1,300 shares of Issacson Co. stock for $32 per share plus a $91 commission. May 16 July 14 Sold 300 shares of Tett Co. stock for $120 per share less a $78 brokerage commission. Aug. 12 Sold 500 shares of Issacson Co. stock for $25 per share less a $78 brokerage commission. Oct. 31 Received dividends of $0.42 per share on Tett Co. stock. Journalize the entries for these transactions. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 24 Investments-Tett Co. Stock 75,887 Cash 75,887 May 16 Investments-Issacson Co. Stock 41,691 Cash 41,691 Cash July 14 35,922 Gain on Sale of Investments Investments-Tett Co. Stock Cash Aug. 12 Loss on Sale of Investments Investments-Tett Co. Stock Oct. 31 Cash Cash Dividends On January 4, Year 1, Ferguson Company purchased 140,000 shares of Silva Company directly from one of the founders for a price of $48 per share. Silva has 400,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $378,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,308,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Investment in Silva Company Stock Cash Year 1, July 2 Cash Investment in Silva Company Stock Year 1, Dec. 31 Investment in Silva Company Stock Income of Silva Company b. Determine the December 31, Year 1, balance of Investment in Silva Company StockStep by Step Solution
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