Answer:
Explanation:
Prepare Hertog Company’s journal entries to reflect the following transactions for the current year.
1. May 7 Purchases 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees.
Dr Short Term Investments..............................10,000
Dr Broker Fess..........................................................300
Cr. Cash.................................................................................10,300
Being purchase of 200 shares of Kraft stock as a short-term investment in trading securities at a cost of $50 per share plus $300 in broker fees
2. June 6 Sells 200 shares of its investment in Kraft stock at $56 per share. The broker’s commission on this sale is $150.
Dr Cash................................................................11,050
Dr Broker Fess........................................................150
Cr. Cash............................................................................10,000
Cr. Gain on Sale of Short-term investments..............1,200
Being Sale of 200 shares of its investment in Kraft stock at $56 per share. The broker’s commission on this sale is $150
