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21 June, 11:06

Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $45 a share plus brokerage fees of $280. The entry for the purchase is

a. Cash4,500 Investments-Saxton Company Stock4,500

b. Investments-Saxton Company Stock4,780 Cash4,780

c. Investments-Saxton Company Stock4,500 Brokerage Fee Expense280 Cash4,780

d. Investments-Saxton Company Stock4,500 Cash4,500

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  1. 21 June, 11:30
    0
    b. Investments-Saxton Company Stock4,780 Cash 4,780

    Explanation:

    answer is D, we will increase the investment value with the brokerage cost since it is a cost incurred to acquire the assets, in this case that is shares.
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