Exercise 1

On 12/31/13 Kevin Corp. held no investment securities. On 1/01/14 Kevin purchased 2,000 shares of Detsch Corp. stock for $20/share and continued to hold the Detsch stock until 10/09/16 when it was sold for $22/share (ignore transaction costs). On 11/20/14, and on 11/19/15 Kevin receives a dividend of $1/share on the Detsch stock. The market value of Detsch stock was $19/share on 12/31/14 and $18/share on 12/31/15. Required: Provide all investment related entries in accounting equation format assuming that Kevin classifies the Detsch Corp. stock investment as Available for Sale.