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Ksivusya [100]
3 years ago
11

Ashland Corporation sells 150 shares of common stock being held as an investment. The shares were acquired six months ago at a c

ost of $30 a share. Ashland sold the shares for $38 a share. The entry to record the sale is:___________
Business
1 answer:
olga55 [171]3 years ago
3 0

Answer:

Dr Cash $5,700

Cr Gain on Sale of Stock Investments $1,200

Cr Stock Investments $4,500

Explanation:

Based on the information given we were told that the Corporation sold 150 shares of common stock that was being held as an investment which means that in a situation where the shares were acquired at a cost of $30 a share in which the Corporation sold the shares for cost of $38 a share. The Journal entry to record the sale will be:

Dr Cash $5,700

(150 shares *$38)

Cr Gain on Sale of Stock Investments $1,200

($5,700-$4,500)

Cr Stock Investments $4,500

(150shares *$30)

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Answer and Explanation:

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