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To record the purchase of 220 shares of Sandhill Company's common stock at $52 per share, we need to make a journal entry that reflects this short-term investment by Oriole Corporation. Here’s how the entry would look:

1. **Calculate the Total Cost of the Investment:**
   \[
   \text{Total Cost} = 220 \text{ shares} \times 52 \text{ dollars/share} = 11440 \text{ dollars}
   \]

2. **Journal Entry:**
   - **Debit**: Investments (Short-term) $11,440 (to record the cost of the investment as an asset)
   - **Credit**: Cash $11,440 (to reflect the cash outflow)

**Journal Entry Format:**
```
Date        Account                       Debit          Credit
----        -------------------------     --------       --------
            Investments (Short-term)      11,440
                Cash                                      11,440
```

This entry increases the Investments account (an asset) and decreases Cash (also an asset).

Would you like more details or have any questions?

Here are 5 additional related questions:
1. What would the entry look like if the stock was purchased as a long-term investment instead?
2. How would the entry differ if the stock price changed to $55 per share?
3. What happens if Oriole Corporation later sells the stock for a profit or loss?
4. How would dividends received from this investment be recorded in the books?
5. What if Sandhill Company's stock was bought on credit rather than with cash?

**Tip:** Always ensure to classify the investment as short-term or long-term in your entries based on the expected holding period.

Oriole Corporation makes a short-term investment in 220 shares of Sandhill Company's common stock. The stock is purchased for $52 a share. The entry for the purchase is

Learn how to record a journal entry for Oriole Corporation's short-term investment in 220 shares of Sandhill Company's common stock at $52 per share. This entry includes debit and credit details, suitable for accounting students and professionals.

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