transactions pertaining to stock investments 1. Temper Co. purchased 60, 6% Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1. If 30 of the securities are sold on July 1 for $32,000 less $300 brokerage fees, the entry would include a credit to Gain on Sale of Debt Investments for a. $2,000. b. $1,700. c. $2,300. d. $1,400. 2. On January 1, Bacon Company purchased as an investment a $1,000, 7% bond for $1,020. The bond pays interest on January 1 and July 1. What is the entry to record the interest accrual on December 31? a. Interest Receivable 35 Interest Revenue 35 b. Debt Investments 35 Interest Revenue 35 c. Interest Receivable 70 Interest Revenue 70 d. Debt Investments 70 Interest Revenue 70 3. Eck Corporation sells 250 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Eck sold the shares for $40 a share. The entry to record the sale is a. Cash 6,250 Loss on Sale of Stock Investments 3,750 Stock Investments 10,000 b. Stock Investments 10,000 Cash 10,000 c. Cash 10,000 Gain on Sale of Stock Investments 3,750 Stock Investments 6,250 d. Cash 10,000 Stock Investments 10,000 4. White Corporation sells 300 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $60 a share. White sold the shares for $40 a share. The entry to record the sale is a. Cash 12,000 Loss on Sale of Stock Investments 6,000 Stock Investments 18,000 b. Cash 18,000 Gain on Sale of Stock Investments 6,000 Stock Investments 12,000 c. Cash 12,000 Stock Investments 12,000 d. Stock Investments 12,000 Loss on Sale of Stock Investments 6,000 Cash 18,000 5. Tan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 3,000 shares of Norton Company (10%) for $48,800 cash plus brokerage fees of $1,400. June 1 Received cash dividends of $2 per share on Norton stock. Oct. 1 Sold 1,200 shares of Norton stock for $24,000 less brokerage fees of $600. The entry to record the purchase of the Norton stock would include a a. debit to Stock Investments for $48,800. b. credit to Cash for $48,800. c. debit to Stock Investments for $50,200. d. debit to Investment Expense for $1,400. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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