Question
Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 420 shares of Medical Company common stock for $20 per
Jackson Company engaged in the following investment transactions during the current year.
| Feb. | 17 | Purchased 420 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. Jackson does not have significant influence over Medical. | ||
| April | 1 | Bought 22,000 of the 100,000 outstanding shares of Olde Company for $220,000. Goodwill of $72,000 was included in the price. | ||
| June | 25 | Received a $1.20 per share dividend on Medical Company stock. | ||
| June | 30 | Olde Company reported second-quarter profits of $12,000. | ||
| Oct. | 1 | Purchased 1,200 bonds of Alpha Company for $15 per bond plus a brokerage fee of $320. These bonds are classified as securities available for sale. | ||
| Dec. | 31 | Medical Co. shares are selling for $25 and Alpha stock is selling for $12. |
Required: Prepare the appropriate journal entries to record the transactions for the year including year-end adjustments.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
978-0324787351
