Question
On February 15, Seacroft buys 7,200 shares of Kebo common stock at $28.55 per share plus a brokerage fee of $410. The stock is classified
On February 15, Seacroft buys 7,200 shares of Kebo common stock at $28.55 per share plus a brokerage fee of $410. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.17 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.32 per share less a brokerage fee of $260. The journal entry to record the purchase on February 15 is: Debit Long-Term Investments-AFS $205,970; credit Cash $205,970. Debit cash $205,560; credit Long-Term Investments-AFS $205,560. Debit Long-Term Investments-AFS $205,560; credit Cash $205,560. Debit Long-Term Investments-AFS $211,104; credit cash $211,104 Debit cash $205,970; credit Long-Term Investments-AFS $205,970
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started