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.