Q5. Lambert Co. Ltd purchased 100 shares of Microsoft Co. shares as a short-term investment at 50 per share plus a brokerage fee of 250 on March 20, 2023 Lambert Co. sold all of its Microsoft shares at 45 per share less a brokerage fee of 100 on April 30, 2023 Journalize both transactions in the general journal by using debit (dr.) and credit (cr.) entries [20 points]

To journalize the transactions for Lambert Co. Ltd's purchase and sale of Microsoft Co. shares, we need to record the initial purchase, the brokerage fee, and the subsequent sale, including the brokerage fee.<br /><br />### Journal Entry for Purchase of Microsoft Shares<br /><br />**Date:** March 20, 2023<br /><br />1. **Debit (Dr.):** Investments in Microsoft Co. (100 shares) - $5,000<br />2. **Credit (Cr.):** Cash - $5,000<br /><br />**Explanation:** Lambert Co. Ltd purchased 100 shares of Microsoft Co. at $50 per share, which totals $5,000.<br /><br />**Journal Entry:**<br />```<br />Date Account Debit Credit<br />Mar 20 Investments in Microsoft Co. (100 shares) $5,000<br /> Cash $5,000<br />```<br /><br />### Journal Entry for Brokerage Fee on Purchase<br /><br />**Date:** March 20, 2023<br /><br />1. **Debit (Dr.):** Miscellaneous Expense - $250<br />2. **Credit (Cr.):** Cash - $250<br /><br />**Explanation:** Lambert Co. Ltd paid a brokerage fee of $250 for the purchase.<br /><br />**Journal Entry:**<br />```<br />Date Account Debit Credit<br />Mar 20 Miscellaneous Expense $250<br /> Cash $250<br />```<br /><br />### Journal Entry for Sale of Microsoft Shares<br /><br />**Date:** April 30, 2023<br /><br />1. **Debit (Dr.):** Cash - $4,500<br />2. **Credit (Cr.):** Investments in Microsoft Co. (100 shares) - $5,000<br /><br />**Explanation:** Lambert Co. Ltd sold the shares at $45 per share, which totals $4,500, resulting in a loss of $500.<br /><br />**Journal Entry:**<br />```<br />Date Account Debit Credit<br />Apr 30 Cash $4,500<br /> Investments in Microsoft Co. (100 shares) $5,000<br />```<br /><br />### Journal Entry for Brokerage Fee on Sale<br /><br />**Date:** April 30, 2023<br /><br />1. **Debit (Dr.):** Miscellaneous Expense - $100<br />2. **Credit (Cr.):** Cash - $100<br /><br />**Explanation:** Lambert Co. Ltd paid a brokerage fee of $100 for the sale.<br /><br />**Journal Entry:**<br />```<br />Date Account Debit Credit<br />Apr 30 Miscellaneous Expense $100<br /> Cash $100<br />```<br /><br />### Summary of Journal Entries<br /><br />1. **March 20, 2023 (Purchase):**<br /> ```<br /> Date Account Debit Credit<br /> Mar 20 Investments in Microsoft Co. (100 shares) $5,000<br /> Cash $5,000<br /> Mar 20 Miscellaneous Expense $250<br /> Cash $250<br /> ```<br /><br />2. **April 30, 2023 (Sale):**<br /> ```<br /> Date Account Debit Credit<br /> Apr 30 Cash $4,500<br /> Investments in Microsoft Co. (100 shares) $5,000<br /> Apr 30 Miscellaneous Expense $100<br /> Cash $100<br /> ```<br /><br />These entries accurately reflect the transactions and the associated costs and revenues.