Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 1 pts Rainbow Corp. owned 400 shares of the common stock of Ohio Co., which it had purchased on January 1, 2018,

image text in transcribed

Question 1 1 pts Rainbow Corp. owned 400 shares of the common stock of Ohio Co., which it had purchased on January 1, 2018, at a total cost of $18,000. In mid-2018, Rainbow received a 50% stock dividend on the Ohio stock. Later in 2018, Rainbow sold 200 shares of the Ohio stock for $10,500, net of commissions and miscellaneous charges. The stock was classified as marketable equity securities. The entry to record the sale would include: All of the answers here are correct. O a debit to Cash of $10.500. O a credit to Marketable Equity Securities of $6,000. O a credit to a Realized Gain on Sale of Marketable Equity Securities of $4,500.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting

Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton

1st Edition

978-0077300456, 0077300459

More Books

Students also viewed these Accounting questions