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Ken-Lake Corporation has invested in the following securities, all purchased on August 1. Security Classification Purchase Price Common stock, Ven Corp. Fair value through net
Ken-Lake Corporation has invested in the following securities, all purchased on August 1. Security Classification Purchase Price Common stock, Ven Corp. Fair value through net income $100,000 Bonds, Ven Corp. Trading securities 45,000 Bonds, Ven Corp. Available for sale securities 38,000 For the month ended August 31, you learn the following: Ven Corp. common stock, fair value is = $98,000 Ven Corp. common stock, dividend received (not previously recognized) = $750 Ven Corp. bonds fair value is now 105% higher than Ken-Lake's purchase price. Accrued interest for the month of August is: Trading securities = $150 (in total) Available for sale = $127 (in total) Required: a. Prepare journal entries necessary based on the above facts (and only those facts)
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