131 - 1 Assume that at the beginning of 2016 Resnick sold half of its shares of the Vallejo Company stock for $30 per share plus $600 in brokerage

131 - 1 Assume that at the beginning of 2016 Resnick sold...

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1. Assume that, at the beginning of 2016, Resnick sold half of its shares of the Vallejo Company stock for $30 per share plus $600 in brokerage selling fees. Prepare the journal entry to record the sale of the Vallejo Company stock. If no adjustments are to be made, then the initial investment placed for half of the Vallejo company shares needs to be calculated. Stock Purchase Price = ( Quantity of Shares ) ( Price per Share ) + Brokerage Fee Vallejo Stock PurchasePrice = ( 800 Shares ) 1 2 ( $ 22.50 1 Share ) + $ 1,200 1 / 2 = $ 9,600 Then the gain from the Vallejo stock sale needs to be calculated with a similar formula; the resulting quantity needs to then be compares to the Vallejo stock investment cost in order to yield the gain or loss on sale of the investment. Stock Sale Price = ( Quantityof Shares ) ( Price per Share ) + Brokerage Fee Vallejo Stock PurchasePrice = ( 800 Shares ) 1 2 ( $ 30.00 1 Share ) + $ 600 = $ 12,600 Gain Loss onSale of Investment = ( Vallejo Stock Sale Price ) −( Vallejo Purchase Price ) Gain Loss onSale of Investment = $ 12,600 $ 9,600 = $ 3,000 ( Gain )
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  • Summer '09
  • BAKER
  • Vallejo Stock, net unrealized fair

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