Question
Bradley Company completed the following securities transactions during 2020: March 1Purchased 500 shares of Thomas Corporation common stock @ $20 per share plus a brokerage
Bradley Company completed the following securities transactions during 2020:
March 1Purchased 500 shares of Thomas Corporation common stock @ $20 per share plus a
brokerage fee of $100.Jasper classified these shares as trading securities.
April 1Bought 30,000 of the 100,000 outstanding shares of Worth Stores common stock
for $300,000 (assume significant influence).
June 25Received a $1.20 per share dividend on the Thomas Corporation stock.
June 30Worth Stores paid $20,000 in dividends to its stockholders.
October 1Purchased 2,000 shares of Alpha Company for $15 per share plus a brokerage fee of
$400.Jasper classified these shares as available-for-sale securities.
November 6Sold the Thomas Corporation shares for $25 per share less a brokerage fee of $250.
December 31Alpha shares are selling for $12 per share.
December 31Worth Stores paid $50,000 in dividends and earned a net income of $200,000.
Required:
Prepare the necessary journal entries to record the above transactions including any year-end
fair value adjustments.
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