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Degger [83]
3 years ago
9

Stock Investment Transactions On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $2

00 brokerage commission. On October 15, a $0.50-per-share dividend was received on the Aspen stock. On November 10, 1,200 shares of the Aspen stock were sold for $42 per share less a $150 brokerage commission. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Journalize the entries to record the original purchase, the dividend, and the sale under the cost method.
Business
1 answer:
Tpy6a [65]3 years ago
7 0

Answer: Please see answer in explanation column

Explanation:

1. Journal to record original purchase.

Date               Account                             Debit                  Credit

Sept 12     Investment- Aspen stock    $100,200.

                     Cash                                                              $100,200.

Calculation

Cash = 2,000 shares  x $50 per share =  100,000 + brokerage commission of $200

= $100,200.

2.Journal to record dividend received

Date               Account                             Debit                  Credit

Oct 15   Cash                                         $1000.

                  Dividend revenue                                             $1000

Calculation

dividend received = $2000 x  $0.50-per-share dividend =$1000

3..Journal to record sale of investment  

Date               Account                             Debit                  Credit

Nov 10   Cash                                        $50,250

             Loss from sale                           $9,870

Investment - Aspen stock                                                   $60,120

Calculation

Purchase price of 1 Share in Aspen stock = 100,200/2000 = 50.10 per share

Investment = share sold x purchase amount of 1 share in Aspen stock  

                   1,200 x 50.10= $60,120

Cash = 1,200 shares  x $42 per share =  100,000 - brokerage commission of $150

= $50,250

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kotykmax [81]

Answer:

Priscilla's homemade dividend per share be in 2017 will be $3.585

Explanation:

In order to calculate what will be Priscilla's homemade dividend per share be in 2017 we would have to use the following formula:

homemade dividend=(Dividend in 2016×(1+Required rate))+Dividend in 2017

homemade dividend=($1×(1+8.5%))+$2.50

homemade dividend=$1.085+$2.50=$3.585

Priscilla's homemade dividend per share be in 2017 will be $3.585

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3 years ago
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umka21 [38]

Answer:

a.Susan is wrong, and Mary is free to disclaim warranties.

Explanation:

According to the Magnuson-Moss Act the seller of a product may or may not provide warranty on a product. But is warranty is provided the following conditions must be met.

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So Mary can choose to disclaim all warranties on her products, not making her liable for any defects found in them. But if she wants to provide warranty it must be written and follow the conditions stated above.

5 0
3 years ago
Explain the link between scarcity and each of the followin​
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The link between the Scarcity and choice is the study of how individuals and society choose to allocate scarce resources.

<h3>What is the Meaning of Scarcity?</h3>

Scarcity refers to the insufficient or the shortage of the resources with the individual or in the particular nation. For Example In any Industry there is the shortage of the skilled workers.

The complete question is attached below.

The link between the Scarcity and the Opportunity Cost is that it has the direct implication on the scarcity. In decision making process, one must has to sacrifice the opportunity cost of that action.

The link between the Scarcity and competition is due to the Lack of resources which forces people to compete for the limited resources that are accessible because there aren't enough to satisfy everyone's wants.

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8 0
2 years ago
Isaac is looking for ways to offer new goods and services to his existing customers. he is pursuing a market development strateg
I am Lyosha [343]

False, this is a product development strategy.

A marketing development strategy finds <em>new </em>markets for <em>existing </em>products, which is the opposite of what Issac is doing.

7 0
3 years ago
Creek Co. uses the percentage of credit sales method in determining its bad debt expense. The following information comes from t
Afina-wow [57]

Answer:

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Explanation:

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5 0
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