Rojas Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1,200 shares of MJ common stock (2% of outstanding shares) for $8,000 cash plus brokerage fees of $400. July 1 Received cash dividends of $2 per share on
Rojas Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 1,200 shares of MJ common stock (2% of outstanding shares) for $8,000 cash plus brokerage fees of $400.
July 1 Received cash dividends of $2 per share on MJ common stock.
Sept. 1 Sold 500 shares of MJ common stock for $5,500 less brokerage fees of $100.
Dec. 1 Received cash dividends of $1 per share on MJ common stock.
Instructions
(a) Journalize the transactions.
(b) Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.
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...
Feb. 1 Purchased 1,200 shares of MJ common stock (2% of outstanding shares) for $8,000 cash plus brokerage fees of $400.
July 1 Received cash dividends of $2 per share on MJ common stock.
Sept. 1 Sold 500 shares of MJ common stock for $5,500 less brokerage fees of $100.
Dec. 1 Received cash dividends of $1 per share on MJ common stock.
Instructions
(a) Journalize the transactions.
(b) Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.
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...
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- Tutor Answer
a Feb 1 Stock Investments 8400 Cash 8000 400 8400 July 1 Cash 1200 X 2 2400 Dividend …View the full answer
Related Book For 
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Question Details
Chapter #
15- Reporting and Analyzing Investments
Section: Exercises
Problem: 2
Posted Date: September 22, 2011 11:30:34
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