How do I prepare these journal entries?

Problem 11 Stock Investments Prepare the general journal entries to record the following transactions for th?

• Problem 11 Stock Investments Prepare the general journal entries to record the following transactions for the RAT Corporation relating to investments. a. The RAT Corporation purchased 200 shares of Mouse Enterprises common stock as an investment for $40 per share plus brokers fees that total $200. USE THE COST METHOD TO ACCOUNT FOR THE INVESTMENT. DATE DESCRIPTION PR DEBIT CREDIT b. Received a cash dividend of $1.50 per share from Mouse Enterprises. DATE DESCRIPTION PR DEBIT CREDIT c. Sold 100 shares of Mouse Enterprises stock for $50 per share. ( No brokers fees) DATE DESCRIPTION PR DEBIT CREDIT

• Answer:

  a.Investment - Mouse Enterprises Common Stock: 8,200 Cash: 8,200 b.Cash: 300 Income - Dividend 300 c.Cash: 5,000 Investment - Mouse Enterprises Common Stock: 4,100 Income - Capital Gains from Sale of Stock: 900 To find out more about stock investing basics, go to http://www.aimhighprofits.com/