Ex. 185
On April 1, Smith Company buys 3,000 ordinary shares of Porter for $60,900. On October 1, Smith sells 1,000 shares of Porter for $22,500.
Instructions
Prepare journal entries for the purchase and sale of the Porter ordinary shares.
Ex. 186
Stone Company had the following transactions pertaining to short-term investments in equity securities.
Jan.1Purchased 1,000 ordinary shares of Quayle Company for $9,750 cash.
June1Received cash dividends of $.50 per share on Quayle Company shares.
Sept.15Sold 400 ordinary shares of Quayle Company for $2,400.
Dec.1Received cash dividends of $.50 per share on Quayle Company shares.
Instructions
(a)Journalize the transactions.
(b)Indicate the income statement effects of the transactions.