Sarasota Corporation purchased $460$ common shares of Ditch Inc. for $$12,500$ on February $21.$ Sarasota paid a $1\%$ commission on the

share purchase and, because the shares were not publicly traded, decided to account for them following the cost model. On June $30,$

Ditch declared and paid a cash dividend of $$1\mathrm{.}30$ per share.

$($a$)$

Correct Answer

Your answer is correct.

Prepare Sarasota Corporation's journal entry to record the purchase of the investment. $($Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date Account Titles and Explanation

Debit

Credit

Feb. $21$

Other Investments

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SolutionYour answer is partially correct.

Prepare Sarasota Corporation's journal entry to record the sale of the Ditch shares in early January the following year for

$$14,300$ less a $1\%$ commission paid on the sale. $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$14157$

eTextbook and Media

List of Accounts

Last saved $1$ second ago.

Attempts: $1$ of $2$ used

Saved work will be auto$-$submitted on the due date. Auto$-$

submission can take up to $10$ minutes.Your answer is partially correct.

Prepare Sarasota Corporation's journal entry to record the sale of the Ditch shares in early January the following year for

$$14,300$ less a $1\%$ commission paid on the sale. $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$14157$

eTextbook and Media

List of Accounts

Last saved $1$ second ago.

Attempts: $1$ of $2$ used

Saved work will be auto$-$submitted on the due date. Auto$-$

submission can take up to $10$ minutes.

List of Accounts