Journalize the entries to record the following selected equity investment transactions completed by Perry Company during the current year. Perry accounts for this investment using the fair value method.
?
February 2Purchased for cash 900 shares of Dexter Co. stock for $54 per share plus a $450 brokerage commission. This represents a less than 10% ownership interest in the company.April 16Received dividends of $0.25 per share on Dexter Co. stock.June 17Sold 200 shares of Dexter Co. stock for $70 per share less a $500 brokerage commission. August 19Purchased 600 shares of Dexter Co. stock for $65 per share plus a $300 brokerage commission.November 14Received dividends of $0.30 per share on Dexter Co. stock.
What will be an ideal response?
| Feb. | 2 | Investments-Dexter Co. Stock | 49,050 | |
| Cash | 49,050 | |||
| (900 shares × $54) + $450 | ||||
| Apr. | 16 | Cash | 225 | |
| Dividend Revenue | 225 | |||
| 900 shares × $0.25 | ||||
| June | 17 | Cash | 13,500 | |
| Investments-Dexter Co. Stock | 10,900 | |||
| Gain on Sale of Investments | 2,600 | |||
| (200 shares × $70) - $500 | ||||
| $49,050/900 = $54.50 share price $54.50 × 200 = $10,900 | ||||
| Aug. | 19 | Investments-Dexter Co. Stock | 39,300 | |
| Cash | 39,300 | |||
| (600 shares × $65) + $300 | ||||
| Nov. | 14 | Cash | 390 | |
| Dividend Revenue | 390 | |||
| 900 - 200 + 600 = 1,300 shares × $0.30 | ||||
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