Accounting question STOCK INVESTMENT PROBLEM!?

Jerome Corporation makes a short-term investment in 160 shares of Singer Company’s common stock. The stock is purchased for $50 a share plus brokerage fees of $550. The entry for the purchase is

Debt Investments 8,000

Cash 8,000

Stock Investments 8,000

Cash 8,000

Stock Investments 8,000

Brokerage Fee Expense 550

Cash 8,550

Stock Investments 8,550

Cash 8,550

I think the answer is:

Stock Investments 8,550

Cash 8,550

CORRECT ME IF I’M WRONG!!!

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  • Jerome Corporation makes a short-term investment in 160 shares of Singer Company’s common stock. The stock is purchased for $50 a share plus brokerage fees of $550. The entry for the purchase is

    Dr Stock Investments 8,550

    Cr Cash 8,550

    You are correct!

    Here’re some notes and illustrations:

    http://www.cliffsnotes.com/more-subjects/accountin…

  • You’re asking Y!A to do your homework for you? Just use a calculator!

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