Prepare General Journal Entries for the Following Transactions Involving Short-Term

question 9

Essay

Prepare general journal entries for the following transactions involving short-term securities (assume no investments were held prior to the following transactions):
(a)Feb 16: Purchased 500 City Corp shares at $35 per share.Commission was $30.
(b)Feb 26: Purchased 800 Southside Corp shares at $25 per share,no commission.
(c)Mar 2: Received a $4 per share dividend on the City Corp shares.
(d)Mar 28: Sold 150 shares of City Corp at $40 per share.
(e)April 20: Sold 250 shares of Southside Corp at $20 per share.
(f)April 30: End of the quarter.The company is preparing quarterly statements.Fair values for securities are as follows: City Corp $42 per share,and Southside Corp $21 per share.

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Definitions:

Organizational Citizenship Behaviour

Refers to voluntary actions employees take to help others and benefit the organization, beyond their job requirements.

Low Risk

Describes situations, investments, or actions that have a minimal chance of negative outcome or loss.

Retroactive Interference

The disruptive effect of new learning on the recall of old information.

Memory Retrieval

The process of recalling information stored in the brain.