Murray Corp. manufactures surveying equipment. Journalize the entries to record the following selected

Murray Corp. manufactures surveying equipment. Journalize the entries to record the following selected equity investment transactions completed by Murray during 2014: Jan. 16. Purchased for cash 3,000 shares of McDowell Inc. stock for $25 per share plus a $140 brokerage commission.

Mar. 23. Received dividends of $0.46 per share on McDowell Inc. stock.

May 25. Purchased 1,000 shares of McDowell Inc. stock for $35 per share plus a $160 brokerage commission.

July 10. Sold 3,200 shares of McDowell Inc. stock for $40 per share less a $200 brokerage commission. Murray assumes that the first investments purchased are the first investments sold.

Oct. 12. Received dividends of $0.51 per share on McDowell Inc. stock.


Answer:

Jan. 16 Investments—McDowell Inc. Stock* 75,140
Cash 75,140
* (3,000 shares × $25) + $140
Mar. 23 Cash* 1,380
Dividend Revenue 1,380
* 3,000 shares × $0.46
May 25 Investments—McDowell Inc. Stock* 35,160
Cash 35,160
* (1,000 shares × $35) + $160
July 10 Cash* 127,800
Gain on Sale of Investments 45,628
Investments—McDowell Inc. Stock** 82,172
* (3,200 shares × $40) – $200
** 3,000 shares purchased………………………………$75,140
200 shares × ($35,160 ÷ 1,000 shares)…………… 7,032
Total cost……………………………………………… $82,172
Oct. 12 Cash* 408
Dividend Revenue 408
* 800 shares × $0.51