Question
Levin company had different debt investments portfolios at the end of 2020, during 2021 Malcom the financial manager decided to maximize the companys profit by
Levin company had different debt investments portfolios at the end of 2020, during 2021 Malcom the financial manager decided to maximize the companys profit by investing for the first time in shares, and you have the following related transactions that occurred during 2021 and 2022
On the first of February 2021, Levin company purchased 4,640 shares which represents 16% of Denzel company total shares (the market value of total Denzel shares was 580,000$ at that date) the company purchased those shares for active trading
On the 15thof March 2021, the company acquired 16% of Nolans shares (Nolans had 1,000,000 outstanding shares) by paying 2,400,000$ to meet a legal requirement.
On the 17thof May 2021 Denzel paid total dividends of 70,000, and Nolans paid total dividends of 200,000$.
On the first of August 2021, the company purchased 5,500 shares of McConaughey enterprise by paying 14$ per share plus 2000 commission the company purchased those shares for active trading
At the end of 2021, the market value of equity shares was as follows (Denzel 32$ per share, Nolans 22$ per share, McConaughey 10$ per share)
At the beginning of June 2022, Levin sold 1,000 of Denzel shares for 45$ per share less fees 1,000$.
At the end of November 2022, Levin sold all Nolans shares for 2,300,000$
At the end of 2022, the market value of equity shares was as follows (Denzel 22$ per share, McConaughey 17$ per share)
required: the following journal entries in Levins books
1. What is the journal entry to be recorded at the end of 2021?
2. What is the journal entry to be recorded at the beginning of June 2022?
3. What is the journal entry to be recorded at the end of November 2022?
4. What is the journal entry to be recorded at the end of 2022?
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