Question

Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 600 shares of Tett Co. stock for $108 per share plus a $162 brokerage commission. May 16 Acquired 2,300 shares of Issacson Co. stock for $38 per share plus a $391 commission. July 14 Sold 200 shares of Tett Co. stock for $120 per share less a $78 brokerage commission. Aug. 12 Sold 800 shares of Issacson Co. stock for $30 per share less a $93 brokerage commission. Oct. 31 Received dividends of $0.26 per share on Tett Co. stock. Journalize the entries for these transactions. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

Investment on Tett Co 64,962 debit

Cash 64,962 credit

--to record Feb 24th--

Investment on Issacson Co 87,791 debit

Cash 87,791 credit

--to record May 16th--

Cash 23,922 debit

Investment on Tett Co 21,654 credit

Gain on Investment 2,268 credit

--to record July 14th--

Cash 23,907 debit

Loss on Investment 15,209.4 debit

Investment on Issacson Co 39,116.4 credit

--to record August 12th--

cash 104 debit

gain on investment 104 credit

--to record October 31th--

Step-by-step explanation:

Tett co:

600 x $108 + 162 commision = 64,962

Issacson:

2,300 x $38 + 391 commision = 87,791

sale of Tett:

200 x 120 - 78 = 23922

cost: 64,962 x 200/600 = 21.654‬

Gain: 23,922 - 21,654 = 2,268

sale of Issacson:

800 x $30 - $93 = 23,907

cost: 87,791 x 800/2000 = 39.116,4

loss: 15.209,4

dividends:

400 shares x 0.26 = 104