Question
1. Prepare journal entries to record the facts in the case, assuming that Jeffrey purchased the shares for the trading securities portfolio. (If no entry
1. Prepare journal entries to record the facts in the case, assuming that Jeffrey purchased the shares for the trading securities portfolio. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the appropriate journal entry on August 04, 2015.
2. Record the appropriate journal entry on December 31, 2015.
3. Record the appropriate journal entry on June 01, 2016.
4. Record the appropriate journal entry on December 31, 2016.
5. Record the appropriate journal entry on June 01, 2017.
6. Record the appropriate journal entry on December 31, 2017
2. Prepare journal entries to record the facts in the case, assuming that Jeffrey purchased the shares for the available-for-sale securities portfolio. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the purchase of 4,000 shares of Kevin Company for $208,000.
2. Record the fair value effects at year-end when the market price of the stock is $51 per share.
3. Record the cash dividends of $2.00 per share.
4. Record the fair value effects at year-end when the market price of the stock is $56 per share.
5. Record the cash dividends of $2.00 per share.
6. Record the fair value effects at year-end when the market price of the stock is $60 per share
3. Prepare journal entries to record the facts in the case, assuming that Jeffrey used the equity method to account for the investment. Jeffrey owns 35 percent of Kevin and Kevin reported $51,000 in income each year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the purchase of 4,000 shares of Kevin Company for $208,000.
2. Record Jeffrey Corporation's 35% portion of Kevin Company's $51,000 income.
3. Record the cash dividends of $2.00 per share.
4. Record Jeffrey Corporation's 35% portion of Kevin Company's $51,000 income.
5. Record the cash dividends of $2.00 per share.
6. Record Jeffrey Corporation's 35% portion of Kevin Company's $51,000 income
On following information purchased 4,000 shares of Kevin Company for $208,000. The following information applies to the stock price of Kevin Company: The Corporation Price 12/31/2015 $51 12/31 2016 56 2/312017 60 Kevin Company declares and pays cash dividends of $2.00 per share on June 1 of each yearStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started