Financial Bookkeeping: Excess Cash and Vertical Analysis
October 2nd, 2022
1. During the fourth quarter of 2007, Emily’s Pet Shop generated excess cash, which the owner invested in securities, as follows:
– Purchased 3,500 shares of common stock as a trading investment, paying $13.75 per share.
– Received semiannual cash dividend of $0.45 per share on the trading investment.
– Sold the trading investment for $13.55 per share.
– Purchased trading investments in stock for $136,000.
– Adjusted the trading securities to their market value of $130,200.
Prepare all journal entries on the books of Emily’s Pet Shop. Explanations are not required.
Please see the attached document for question 2.