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Marysya12 [62]
3 years ago
6

Cooke Corporation sells 400 shares of common stock being held as a short-term investment. The shares were acquired six months ag

o at a cost of $55 a share. Cooke sold the shares for $40 a share. The entry to record the sale is
Business
1 answer:
Tems11 [23]3 years ago
4 0

Answer:

Dr Cash 16,000

Dr Loss on Sale of Stock investment 6,000

Cr Stock Investments 22,000

Explanation:

Preparation of the Journal entry to record the sale

Based on the information given we were told that the Corporation sells shares of 400 common stock which is being held as a short-term investment in which the shares were been acquired 6 months ago at the amount of $55 per share which means that if Cooke sold the shares for the cost of $40 per share. The entry to record the sale will be :

Dr Cash 16,000

(400*40 shares)

Dr Loss on Sale of Stock investment 6,000

(22,000-16,000)

Cr Stock Investments 22,000

(400*55 shares)

(Being to record sales)

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[The following information applies to the questions displayed below.]
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                                  Allied Merchandisers

                                        Journal Entries

Date           General Journal                         Debit        Credit

03-May   Merchandise Inventory               $20,000

                     To Cash                                                     $20,000

05-May    Accounts Receivable                 $21,000

                      To Sales                                                    $21,000

05-May     Cost of goods sold                     $15,000

                     To Merchandise Inventory                        $15,000

07-May      Sales Returns and allowances   $1,750  

                      To Accounts Receivable                           $1,750

07-May      Merchandise Inventory               $1,250

                      To Cost of goods sold                                $1,250

08-May      Sales Returns and allowances    $300

                       To Accounts Receivable                            $300

15-May        Cash                                             $18,571

                   Sales Discounts                           $379

                    ($18950*2%)

                         To Accounts receivable                           $18,950

                          ($21000-$1750-$300)

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