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On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40 brokerage commission. This was less than 20% ownership in the stock of M Company. On September 1, when recording the journal entry for this transaction, what account would be credited and for what amount for the acquisition of the 1,500 shares of M Company stock? Journal DATE DESCRIPTION PREF DEBIT CREDIT Sept. 1 (?) (?) Credit Investments-M Company Stock, $36,040 Credit Cash, $36,040 Credit Investments-M Company Stock, $36,000 Credit Cash, $36,000

On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40 brokerage commission. This was less than 20% ownership in the stock of M Company. On September 1, when recording the journal entry for this transaction, what account would be credited and for what amount for the acquisition of the 1,500 shares of M Company stock? Journal DATE DESCRIPTION PREF DEBIT CREDIT Sept. 1 (?) (?) Credit Investments-M Company Stock, $36,040 Credit Cash, $36,040 Credit Investments-M Company Stock, $36,000 Credit Cash, $36,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40 brokerage commission. This was less than 20% ownership in the stock of M Company. On September 1, when recording the journal entry for this transaction, what account would be credited and for what amount for the acquisition of the 1,500 shares of M Company stock? Journal DATE DESCRIPTION PREF DEBIT CREDIT Sept. 1 (?) (?) Credit Investments-M Company Stock, $36,040 Credit Cash, $36,040 Credit Investments-M Company Stock, $36,000 Credit Cash, $36,000
Transcribed Image Text:On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40 brokerage commission. This was less than 20% ownership in the stock of M Company. On September 1, when recording the journal entry for this transaction, what account would be credited and for what amount for the acquisition of the 1,500 shares of M Company stock? Journal DATE DESCRIPTION PREF DEBIT CREDIT Sept. 1 (?) (?) Credit Investments-M Company Stock, $36,040 Credit Cash, $36,040 Credit Investments-M Company Stock, $36,000 Credit Cash, $36,000
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