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Prepare the journal entries to record the stock transactions

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Reference no: EM132221400

Question - On December 31, 2017, Gulbis, Inc. owned the following securities, held as a short-term investment (available-for-sale securities). The securities are not held for influence or control of the investee.

Stock

# of Shares

Cost

Stephens common stock

5,000

90,000

Robson common stock

5,500

41,525

Keys common stock

3,200

34,400

 

 

165,925

On December 31, 2017, the total fair value of the securities was equal to its cost. In 2018, the following transactions occurred:

July 1 Received $1.25 per share cash dividend on robsonco. Common stock.

Aug 1 Received $0.87 per share cash dividend on stephens Co. common stock.

Sept 1 Sold 1,300 shares of robsonco common stock for cash at$8.35 per share, less brokerage fees of $500.

Oct 1 Sold 1,850 shares of stephens Co. common stock for cash at $20 per share, less brokerage fees of $600.

At year end on December 31, 2018, the market values per share were:

Stephens common stock - $17.50

Robson common stock - $8.55

Keys common stock - $11.75

Instructions - Prepare the journal entries to record the 2018 stock transactions.

Reference no: EM132221400

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