Answer:
July 1
Dr Cash $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash $9,180
Cr Gain on Sale of Stock Investments $1,530
Cr Stock Investments $7,650
Oct-01
Dr Cash $14,797
Cr Stock Investments $13,152
Cr Gain on Sale of Stock Investments $1,645
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
Explanation:
Preparation of the journal entries
July 1
Dr Cash (5,090 X $2) $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash (1,050 X $0.50) $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash [(1,020 X $9) ] $9,180
Cr Gain on Sale of Stock Investments $1,530
($9,180-$7,650)
Cr Stock Investments (274 X $7.5) $7,650
(38,175/5,090=$7.5)
Oct-01
Dr Cash [(274 X $54)] $14,797
Cr Stock Investments (274 X $48) $13,152
($50,400/1,050=$48)
Cr Gain on Sale of Stock Investments $1,645
($14,797-$13,152)
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
(1,199*$1)
