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5 March, 05:51

Prepare Hertog Company's journal entries to reflect the following transactions for the current year. May 7 Purchases 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees. June 6 Sells 200 shares of its investment in Kraft stock at $56 per share. The broker's commission on this sale is $150.

Short-term Investments-Trading (Kraft) ?

Gain on sale of short-term investments?

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  1. 5 March, 08:13
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    Prepare Hertog Company's journal entries to reflect the following transactions for the current year.

    1. May 7 Purchases 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees.

    Dr Short Term Investments ... 10,000

    Dr Broker Fess ... 300

    Cr. Cash ... 10,300

    Being purchase of 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees

    2. June 6 Sells 200 shares of its investment in Kraft stock at $56 per share. The broker's commission on this sale is $150.

    Dr Cash ... 11,050

    Dr Broker Fess ... 150

    Cr. Cash ... 10,000

    Cr. Gain on Sale of Short-term investments ... 1,200

    Being Sale of 200 shares of its investment in Kraft stock at $56 per share. The broker's commission on this sale is $150
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Home » Business » Prepare Hertog Company's journal entries to reflect the following transactions for the current year. May 7 Purchases 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees.
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