Cost method - is $28 and a $25 broker's fee is paid, the...

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Cost method The cost method of accounting for stock investments records the acquisition costs in an asset  account, “Equity Investments.” As with debt investments, acquisition costs include commissions and  fees paid to acquire the stock. If 72 shares of PWC Corporation are acquired when the market price 
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Unformatted text preview: is $28 and a $25 broker's fee is paid, the entry to record the purchase is: General Journal Date Account Title and Description Ref. Debit Credit 20X0 Jan. 18 Equity Investments [(72 shares × $28) + $25] 2,041 Cash 2,041 Acquire 1% of PWC Corporation stock...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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