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6 May, 10:57

On September 12, 3,500 shares of Aspen Company are acquired at a price of $39.00 per share plus a $175 brokerage commission. On October 15, a $1.20-per-share dividend was received on the Aspen Company stock. On November 10, 1,400.00 shares of the Aspen Company stock were sold for $33 per share less a $70 brokerage commission. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Sept. 12 Oct. 15 Nov. 10

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  1. 6 May, 12:38
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    Sept 12

    Dr Investments-Aspen Company Stock 136,675

    Dr Cash 136,675

    Oct 15

    Dr Cash 4,200

    Cr Dividends Revenue 4,200

    Nov 10

    Dr Cash 46,130

    Dr Loss on sale of Investments 8,540

    Cr Investments-Aspen Company Stock 54,670

    Explanation:

    Aspen Company Journal entry

    Sept 12

    Dr Investments-Aspen Company Stock 136,675

    [ (3,500*39) + 175]

    Dr Cash 136,675

    Oct 15

    Dr Cash 4,200

    (3,500*1.20)

    Cr Dividends Revenue 4,200

    Nov 10

    Dr Cash 46,130

    [ (1,400*33) - 70]

    Dr Loss on sale of Investments 8,540

    (54,670-46,130)

    Cr Investments-Aspen Company Stock 54,670

    (136,675/3500*1,400
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