The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10 Purchased 4,000 shares of Delew Company’s common stock for a price of $52 per share plus a brokerage commission of $105. Delew Company has 240,000 shares of common stock outstanding. July 8 Received a quarterly dividend of $0.50 per share on the Delew Company investment. Sept. 10 Sold 1,200 shares for a price of $42 per share less a brokerage commission of $90. Dec. 31 At the end of the accounting period, the fair value of the remaining 2,800 shares of Delew Company’s stock was $51.53 per share. Required: Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar. CHART OF ACCOUNTS Vintage Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Delew Company Stock 165 Valuation Allowance for Equity Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Delew Company 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Delew Company 731 Loss on Sale of Investments 741 Unrealized Loss on Equity Investments

The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10 Purchased 4,000 shares of Delew Company’s common stock for a price of $52 per share plus a brokerage commission of $105. Delew Company has 240,000 shares of common stock outstanding. July 8 Received a quarterly dividend of $0.50 per share on the Delew Company investment. Sept. 10 Sold 1,200 shares for a price of $42 per share less a brokerage commission of $90. Dec. 31 At the end of the accounting period, the fair value of the remaining 2,800 shares of Delew Company’s stock was $51.53 per share. Required: Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar. CHART OF ACCOUNTS Vintage Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments-Delew Company Stock 165 Valuation Allowance for Equity Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Delew Company 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Delew Company 731 Loss on Sale of Investments 741 Unrealized Loss on Equity Investments

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 7E: The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account...

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The following equity investment transactions were completed by Vintage Company during a recent year:

Apr.	10	Purchased 4,000 shares of Delew Company’s common stock for a price of $52 per share plus a brokerage commission of $105. Delew Company has 240,000 shares of common stock outstanding.
July	8	Received a quarterly dividend of $0.50 per share on the Delew Company investment.
Sept.	10	Sold 1,200 shares for a price of $42 per share less a brokerage commission of $90.
Dec.	31	At the end of the accounting period, the fair value of the remaining 2,800 shares of Delew Company’s stock was $51.53 per share.

Required:

Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.

CHART OF ACCOUNTS
Vintage Company
General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
161	Investments-Delew Company Stock
165	Valuation Allowance for Equity Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable
251	Sales Tax Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain (Loss) on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
621	Income of Delew Company
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Repairs Expense
534	Selling Expenses
535	Rent Expense
536	Insurance Expense
537	Office Supplies Expense
538	Store Supplies Expense
561	Depreciation Expense-Store Equipment
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense
721	Loss of Delew Company
731	Loss on Sale of Investments
741	Unrealized Loss on Equity Investments

Journalize the entries for these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every
line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate
calculations to two decimal places. When required, round final answers to the nearest dollar.
PAGE 10
ACCOUNTING EQUATION
JOURNAL
CREDIT
ASSETS
LIABILITIES
EQUITY
DATE
DESCRIPTION
POST. REF.
DEBIT
4.
8

Expert Solution

Introduction :

On April 10 : Investment in Delew Company stock

= ($ 52 * 4000 shares )+ $ 105

= $ 208105

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