Asked Jan 17, 2020

Shott Farm Supplies Corporation purchased 800 shares of General Motors stock at $50 per share and paid a brokerage fee of $1,200. Two months later, the shares were sold for $53 per share. The brokerage fee on the sale was $1,300. Required: Prepare entries for the purchase and the sale.


Expert Answer

Step 1

Cash paid for purchase.

Accounting homework question answer, step 1, image 1
Step 2

Entry to record the purchase.

Accounting homework question answer, step 2, image 1
Step 3

Amount received from sale,...

Accounting homework question answer, step 3, image 1

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