4 Party Mart 2 400 Adjust Eat Sale and Year End On November of Year 1 Drucker Co acquired the following investments in equity securities measured at FV. NI y Corporation 500 share.com todo o per there Kede Corporation 300 shared stock 150 jurateure On December 31, the company year-end, the quoted market prices were as followsKelly Corporation common stock, 352, and Keele Corporation preferred stock, 524. Following are the data for the following year Year 2) Mar. 02: Dividends per share declared and paid Kelly Corp. 51, and Keefe Corp- $0.50, Oct 011 Sold 100 shares of Keele Corporation preferred stock at $25 per share Dec 31: Fair values: Kelly common 546 per share, Keefe preferred $26 per share Year! Yearz Prepare the entry for Drucker Company to record the purchase of the securities b. Prepare any adjusting entry needed at December 31, Yeart Note: If a journal entry isn't required for the transaction select "NADebit" and "N/A-Credit" as the account names and leave the Dr, and answers blank (zero) Debat 36.000 Credit 5.000 Date Account Name NO.1 Year 1 etmenin Stock Cash To record bunched Dc State Gorincome Vale Adunay Sect 31100 OV 2,000 Cindicate the items and amounts that should be reported on the Year 1 income statement of Drucker and its year end balance sheet. Assume that the investments are assified as current Note: Use a negative sign to indicate a lossi Year 1 Income Statement Others and Net panto) on courty.com Balance Sheet, Dec. 31. Year AS 28000 Following are the data for the following year (Year 21 Mar. 02: Dividends per share decated and paid: Kelly Corp. 51 and Keele Corp. 50.50 Oct. 01 Sold 100 shares of Reele Corporation preferred stock 525 per share. Dec. 31. Fair values Kelly common 546 per share, Keele preferred 526 per share Yeart Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities b. Prepare any adjusting entry needed at December 31: Year 1 'Note: It journal entry on't required for the transaction select "NA-Debit" and "NA-Credit as the account names and leave the De and Cranswers blank czero Debit Credit 16.000 36.000 Date Account Name Na trentino Cash To record and acces Dec. for 1 dan orto-Income Faw Value Austment-qat Serties 0 2.800 9 2.300 Indicate the terms and amounts that should be reported on the Year 1 income statement of Drucker and its year end balance sheet. Assume that the investments are classified as current Note: Use a negative sign to indicate a loss Income Statement Year 12.800 Other Revenue and Gars Netanolonegut courtes Balance Sheet Dec 31 Year Asset Investment in eaty Suites 33200 Check EELWURDUT pierea stock at 25 per Share Dec 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment Update the Fair Value Adjustment account prior to recording any sale. Eliminate the associated Fair Value Adjustment account upon recording the sale of any investment Cr. Dr. 650 Date Account Name Mar. 2. Year 2 Cash Dividend Revenue To record dividends received Oct. 1. Year 2 Unrealized Gain or Loss-Income 0 650 V 0 OX 2.500 0 2.500 x v OX 0 0 v To adus investment to be sold to far valve Oct. 1. Year 2 Fair Value Adjustment--Equity Securities Investment in Stock Investment income To record sale of investment Dec. 31. Year 2 Unrealized Gain or loss --Income Fair Value Adjustment--Equity Securities To adjust the FVA account 0 X 0