On january 15 purchased 9000 shares of gonzalez companys, Ask an Expert

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On January 15, purchased 9,000 shares of Gonzalez Company's common stock at $33.50 per share plus commission $1,980.
On April 1, purchased 5,000 shares of Belmont Co.'s common stock at $52.00 per share plus commission $3,370.
On September 10, purchased 7,000 shares of Thep Co.'s preferred stock at $26.50 per share plus commission $4,910.

On May 20, 2010, Capriati sold 3,000 shares of Gonzalez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $2,850. The year-end fair values per share were: Gonzalez $30, Belmont $55, and Thep $28. In addition, the chief accountant of Capriati told you that Capriati Corporation holds these securities with the intention of selling them in order to earn profits from appreciation in prices.
(a) Prepare the journal entries to record the above three security purchases.

(b) Prepare the journal entry for the security sale on May 20.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9981643

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