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6 March, 03:14

On April 18, Riley Co. made a short-term investment in 440 common shares of XLT Co. The purchase price is $56 per share and the broker's fee is $390. The intent is to actively manage these shares for profit. On May 30, Riley Co. receives $1.30 per share from XLT in dividends.

a. Prepare the April 18 and May 30 joumal entries to record these transactions.

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  1. 6 March, 05:55
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    General Journal

    April 18

    Debit Short-term Investments 25,030

    Credit Cash 25,030

    (440x$56 = 24,620+390) = 25,030

    May 30,

    Debit Cash 572

    Credit Dividend Revenue 572

    1.30*440 = 572
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Home » Business » On April 18, Riley Co. made a short-term investment in 440 common shares of XLT Co. The purchase price is $56 per share and the broker's fee is $390. The intent is to actively manage these shares for profit. On May 30, Riley Co. receives $1.
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