Made a short-term investment

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Reference no: EM131222582

On April 18, Riley Co. made a short-term investment in 370 common shares of XLT Co. The purchase price is $49 per share and the broker’s fee is $320. The intent is to actively manage these shares for profit. On May 30, Riley Co. receives $1.70 per share from XLT in dividends.

Prepare the April 18 and May 30 journal entries to record these transactions.

1. On April 18, Riley Co. made a short-term investment in 370 common shares of XLT Co. The purchase price is $49 per share and the broker’s fee is $320. The intent is to actively manage these shares for profit.

2. On May 30, Riley Co. receives $1.70 per share from XLT in dividends.

Reference no: EM131222582

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Made a short-term investment : On April 18, Riley Co. made a short-term investment in 370 common shares of XLT Co. The purchase price is $49 per share and the broker’s fee is $320. The intent is to actively manage these shares for profit. On May 30, Riley Co. receives $1.70 per sh..

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