Shares of kebo common stock


On February 15, Seacoft buys 7000 shares of Kebo common stock at $28.53 per share plus a brokerage fee of $400. The stock is classified as available for sale securities. On March 15, Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 15 and ultimately dells half of the Kebo stock on November 17 of the current year for $29.30 per share less a brokerage fee of $250. The journal entry to record the sale of the stock on November 17 is:

A) Debit Cash $102300; Credit Long Term Investment-AFS-$99855; Credit Gain on Sale of Long term investment $2445
B) Debit Cash $102550; Credit Long Term Investment-Trading-$99855; Credit Gain on Sale of Long term investment $2695
C) Debit Cash $102550; Credit Long Term Investment-AFS-$100055; Credit Gain on Sale of Long term investment $2495
D) Debit Cash $102300; Credit Long Term Investment-AFS-$100055; Credit Gain on Sale of Long term investment $2245
E) Debit Cash $102300; Credit Long Term Investment-Trading-$99855; Credit Gain on Sale of Long term investment $2645

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Accounting Basics: Shares of kebo common stock
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