Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 2

Entries for investment in stock, receipt of dividends, and sale of shares
On March 4, Breen Corporation acquired 7,500 shares of the 200,000 outstanding shares of Melton Co. common stock at $40 plus commission charges of $175. On June 15, a cash dividend of $2.10 per share was received. On October 12, 3,000 shares were sold at $46, less commission charges of $175.
Using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 3,000 shares.