On March 1s, Somnium purchased in cash 5,000 shares from Microsoft and paid $45 per share...

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• On March 1s, Somnium purchased in cash 5,000 shares from Microsoft and paid $45 per share together with a commission of $500. • On April 5th Microsoft distributed dividends of $0.5 per share. · On May 1st Somnium decided to sell 2,500 shares from Microsoft with the market price of $60 and paid a commission of $150. • On the 31st of December the market value of Microsoft share is $35 per share. Show all the calculations and prepare the journal entries. Full points are awarded only for correct journalizing and calculations. a) Prepare the journal entry for March 1". b) Prepare the journal entry for April 5". e Prepare the journal entry for May 1st. d) Prepare the journal entry for December 31". • On March 1s, Somnium purchased in cash 5,000 shares from Microsoft and paid $45 per share together with a commission of $500. • On April 5th Microsoft distributed dividends of $0.5 per share. · On May 1st Somnium decided to sell 2,500 shares from Microsoft with the market price of $60 and paid a commission of $150. • On the 31st of December the market value of Microsoft share is $35 per share. Show all the calculations and prepare the journal entries. Full points are awarded only for correct journalizing and calculations. a) Prepare the journal entry for March 1". b) Prepare the journal entry for April 5". e Prepare the journal entry for May 1st. d) Prepare the journal entry for December 31".

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Assumption Investment in Microsoft is less than 20 of Total Stocks of Microsoft and doesnot lead to ... View the full answer