Blaine Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Norton Company (10%) for $51,000.
June 1 Received cash dividends of $2 per share on Horton stock.
Oct) 1 Sold 1,200 shares of Horton stock for $32,400.
The entry to record the sale of the stock would include a

Question

Quizplus · Accepted Answer

The sale of 1,200 shares for $32,400 results in a gain. The cost per share was $25.50 ($51,000/2,000 shares), so the cost of 1,200 shares is $30,600. The gain is $32,400 - $30,600 = $1,800, which is credited to Gain on Sale of Stock Investments.

Blaine Company Had These Transactions Pertaining to Stock Investments: Feb