On February 12,Addison,Inc.purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee.On August 22,Lucas paid a $0.42 dividend per share.On November 10,4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee.The journal entry to record the purchase would include a

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The purchase of 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee amounts to a total cost of $132,240, which would be recorded as a debit to the Investments account. The cash paid for the purchase would be credited to the Cash account. Therefore, the journal entry to record the purchase would be a debit to Investments for $132,240 and a credit to Cash for $132,240.