On February 1, Neil Company purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. On March 20, Neil Company sold 100 shares of Young stock for $2,900, less a $50 brokerage fee. Neil received a dividend of $1.00 per share on April 25. On June 15, Neil sold 200 shares

Chapter 16, Exercises #6

On February 1, Neil Company purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. On March 20, Neil Company sold 100 shares of Young stock for $2,900, less a $50 brokerage fee. Neil received a dividend of $1.00 per share on April 25. On June 15, Neil sold 200 shares of Young stock for $7,400, less a $90 brokerage fee. On July 28, Neil received a dividend of $1.25 per share.

Instructions

Prepare the journal entries to record the transactions described above.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...