On January 1, 2019, Seminole Inc. purchased 300 shares of Cornett Company common stock at $40 per share. Prepare the January 1 journal entry to record the purchase of these equity securities.
Record the journal entry for the purchase of the equity securities as on January 1.
Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.
Record the journal entry for the purchase of the equity securities as on January 1.
Date | Account Title and Explanation | Debit  ($) | Credit ($) |
January 1 | Investment in equity securities (1) | 12,000 | Â |
 |     Cash |  | 12,000 |
 | (To record the investment made in equity securities) |  |  |
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