Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $45 a share plus brokerage fees of $280. The entry for the purchase is
a. Cash4,500 Investments—Saxton Company Stock4,500
b. Investments—Saxton Company Stock4,780 Cash4,780
c. Investments—Saxton Company Stock4,500 Brokerage Fee Expense280 Cash4,780
d. Investments—Saxton Company Stock4,500 Cash4,500
b. Investments—Saxton Company Stock4,780 Cash 4,780
Explanation:
answer is D, we will increase the investment value with the brokerage cost since it is a cost incurred to acquire the assets, in this case that is shares.
