On February 20, 5,000 shares of Rhymer Company are acquired at a price of $51 per share plus a $250 brokerage fee. On September 10, a $1.10 per share dividend was received on the Rhymer Company stock. On October 5, 2000 shares of Rhymer Co. stock were sold for $45 per share less a $100 brokerage fee.

Instructions: Using the cost method, prepare the journal entries for the purchase, dividend, and sale of the stock.

JOURNAL

DATE DESCRIPTION DEBIT CREDIT