Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 2

Stock investment transactions
On March 20, 10,000 shares of Thorlite Company are acquired at a price of $30 per share plus a $250 brokerage fee. On May 30, a $0.25-per-share dividend was received on the Thorlite Company stock. On June 15, 5,000 shares of the Thorlite Company stock were sold for $36 per share less a $200 brokerage fee. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.
On September 12, 2,000 shares of Aspen Company are acquired at a price of $50 per share plus a $200 brokerage fee. On October 15, a $0.50-per-share dividend was received on the Aspen Company stock. On November 10, 1,200 shares of the Aspen Company stock were sold for $42 per share less a $150 brokerage fee. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.