Question

On February 15, Jewel Company buys 7,500 sharFernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 308,000 Cash dividends declared for the year 68,750 Proceeds from the sale of equipment 118,000 Gain on the sale of equipment 6,750 Cash dividends payable at the beginning of the year 30,250 Cash dividends payable at the end of the year 37,500 Net income for the year 151,250 The ending balance in retained earnings is:es of Marcelo Corp. common stock at $28.58 per share plus a brokerage fee of $425. The stock is classified as long-term available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo declares a dividend of $1.20 per share payable to stockholders of record on April 15. Jewel received the dividend on April 15 and ultimately sells half of the Marcelo stock on November 17 of the current year for $29.35 per share less a brokerage fee of $275. The journal entry to record the purchase on February 15 is:

Answer 1

investment on Marcelo Corp 214,775 debit

Cash 214,775 credit

Step-by-step explanation:

The journal entry to record the purchase on February 15 is:

There was an issue with how you paste the question but I figured out:

On February 15, Jewel Company buys 7,500 shares of Marcelo Corp. common stock at $28.58 per share plus a brokerage fee of $425.

We will enter the shares for the cost it need to be in the company's possesions, this includes the brokerage fee.

7,500 x 28.58 + 425 = 214.775‬