19. Porter Company purchased 1,400 shares of the Krafty Group common stock for $53,200 (i.e., $38 per share) at the beginning of the current year. There were 28,000 outstanding Krafty shares on the date of acquisition. Porter Company classifies its investment in Krafty as part of its available-for-sale portfolio. Total stockholders' equity of Krafty Company is $1,090,000 on the date of acquisition. Krafty reported $350,000 in net income and declared and paid $1.70 per share cash dividends at year-end. Read the requirements Requirement a. Prepare the journal entry to record the purchase of the Krafty shares. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Acquisition Available-for-Sale Equity Investments 53,200 Cash 53,200 Requirement b. Prepare the journal entries necessary to reflect Porter's share of Krafty's dividends. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Year-End (1) Cash (2) Dividend Income (3 (4) Requirement c. Prepare the journal entry required to adjust Porter's available-for-sale investment to its fair value of $49 per share at year-end. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) Account Year-End (5) (6) (7) (8) Requirement d. Prepare the journal entry necessary to record the sale of 700 Krafty shares for $58 per share at the beginning of the next year. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Beginning of Year 2 (9) (10) (11) (12) 1: Requirements Prepare the journal entry to record the purchase of the Krafty shares. a b. Prepare the journal entries necessary to reflect Porter's share of Krafty's dividends. Prepare the journal entry required to adjust Porter's available-for-sale investment to its fair value of $49 per share at C. year-end. d. Prepare the journal entry necessary to record the sale of 700 Krafty shares for $58 per share at the beginning of the next year (1) O O Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable O Interest Receivable Available-for-Sale Equity Investments O Cash O Dividend lncome Interest Revenue O Realized Gain/Loss Net Income ORealized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss Net Income O Unrealized Gain/Loss-Other Comprehensive Income (2) Q Available-for-Sale Equity Investments O Cash O Dividend Income O Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable Interest Receivable O Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss- Net Income O Unrealized Gain/Loss Other Comprehensive Income (3) C Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense OInterest Payable O Interest Receivable Available-for-Sale Equity Investments Cash O Dividend Income O Interest Revenue Realized Gain/Loss Net Income Realized Gain/Loss-Other Comprehensive Income O Unrealized Gain/Loss -Net Income O Unrealized Gain/Loss Other Comprehensive Income (4) Fair Value Adjustment-Available-for-Sale Equity Investments Interest Expense Interest Payable Available-for-Sale Equity Investments Cash O Dividend Income O Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss- Net Income O Unrealized Gain/Loss Other Comprehensive Income Interest Receivable (5) O Available-for-Sale Equity Investments O Cash O Dividend Income Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable O Interest Receivable Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss Net Income O Unrealized Gain/Loss Other Comprehensive Income (6) Fair Value Adjustment-Available-for-Sale Equity Investments Interest Expense Interest Payable O Interest Receivable Available-for-Sale Equity Investments O Cash O Dividend Income O Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss O Unrealized Gain/Loss-Net Income O Unrealized Gain/Loss-Other Comprehensive Income Other Comprehensive Income O Fair Value Adjustment-Available-for-Sale Equity Investments Interest Expense OInterest Payable (7) O Available-for-Sale Equity Investments O Cash O Dividend Income O Interest Receivable Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss-Net Income O Unrealized Gain/Loss Other Comprehensive Income (8) Fair Value Adjustment-Available-for-Sale Equity Investments OInterest Expense O Interest Payable OInterest Receivable Available-for-Sale Equity Investments O Cash O Dividend Income O Interest Revenue O Realized Gain/Loss-Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss Net Income O Unrealized Gain/Loss Other Comprehensive Income OOO (9) OAvailable-for-Sale Equity Investments O Cash O Dividend Income Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable O Interest Receivable O Interest Revenue ORealized Gain/Loss Net Income O Realized Gain/Loss-Other Comprehensive Income O Unrealized Gain/Loss-Net Income O Unrealized Gain/Loss Other Comprehensive Income (10) O Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense Interest Payable O Interest Receiva ble O Available-for-Sale Equity Investments O Cash O Dividend Income Interest Revenue Realized Gain/Loss-Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss-Net Income O Unrealized Gain/Loss-Other Comprehensive Income (11) O O Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable O Interest Receivable Available-for-Sale Equity Investments O Cash Dividend Income O Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss-Net Income O Unrealized Gain/Loss Other Comprehensive Income (12) Fair Value Adjustment-Available-for-Sale Equity Investments O Interest Expense O Interest Payable O Interest Receivable O Available-for-Sale Equity Investments O Cash O Dividend Income O Interest Revenue O Realized Gain/Loss Net Income O Realized Gain/Loss Other Comprehensive Income O Unrealized Gain/Loss Net Income O Unrealized Gain/Loss Other Comprehensive Income