Explanation:
April 16: Dr Short-term investment (6000*24) 144000
Cr Cash 144000
(To record purchase of shares of Gem co)
July-7: Dr Short-term investment (3000*55) 165000
Cr Cash 165000
(To record purchase of shares of pepsico)
July-20. Dr Short-term investment (1500*15) 22500
Cr Cash 22500
(To record purchase of shares of Xerox)
Aug-15. Dr Cash (6000*.95) 5700
Cr Dividend income 5700
(To record cash dividend of Gemco)
Aug-28. Dr Cash (3000*30.75 ) 92250
Cr Short-term investment (3000*24) 72000
Cr Gain on sale of investment(3000 * 6.75 N#1) 20250
(To record sale of shares of Gemco ).
Oct-1. Dr Cash (1.60 *3000) 4800
Cr Dividend income 4800
(To record cash dividend of pesico)
Dec-15. Dr Cash ( 6000*1.60) 9600
Cr Dividend income 9600
(To record cash dividend or remaining shares of gemco)
Dec-31. Dr Cash (3000*1.00) 3000
Cr Dividend income 3000
(To record cash dividend )
[N#1: 24-30.75= 6.75 *3000 = 20250]
