Reference no: EM132641630

Question - The remaining questions refer to the following transaction. Answer each question in the space provided.

In December 2017, Waren Sporting Supply purchased 200 shares of YouWork Corporation common stock for $15 per share through Waren's investment broker, Coastal Brokerage. Waren paid Coastal a commission of $75 at the time of the purchase. At that time, Waren recorded the appropriate journal entry.

Last week, Waren sold the 200 shares of YouWork stock for $22 per share. Coastal Brokerage retained a $95 commission for the sale and sent Waren a check for the net proceeds. Waren received the check and now needs to record information about this sale of stock and the check receipt.

Required -

Where should the journal entry for this transaction be recorded? Do we also need to post information to a subsidiary ledger? Why or why not?

What is the journal entry? Write the complete journal entry below, or show the entry in the appropriate journal in the Appendix. Be sure your entry clearly shows the entry date, description, account numbers, and debit/credit amounts.

What impact does the sale of YouWork stock have on Waren's Balance Sheet? Complete the following table to answer this question.

How will the sale of YouWork stock impact Waren's Income Statement for the current year? Specifically, will Net Income (ignoring any income tax effect) increase, decrease, or be unchanged and why?