On August 4, 2015, Jeffrey Corporation purchased 4,400 shares of Kevin Company for $259,600. The following information applies to the stock price of Kevin Company:

	Price
12/31/2015	$	58
12/31/2016		63
12/31/2017		67

Kevin Company declares and pays cash dividends of $3.50 per share on June 1 of each year.

Required:

1. Prepare journal entries to record the facts in the case, assuming that Jeffrey purchased the shares for the trading securities portfolio. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.Record the appropriate journal entry on August 04, 2015. b.Record the appropriate journal entry on December 31, 2015. c.Record the appropriate journal entry on June 01, 2016. d.Record the appropriate journal entry on December 31, 2016. e.Record the appropriate journal entry on June 01, 2017. f.Record the appropriate journal entry on December 31, 2017.

2.Prepare journal entries to record the facts in the case, assuming that Jeffrey purchased the shares for the available-for-sale securities portfolio.

a.Record the purchase of 4,400 shares of Kevin Company for $259,600. b.Record the fair value effects at year-end when the market price of the stock is $58 per share. c.Record the cash dividends of $3.50 per share. d.Record the fair value effects at year-end when the market price of the stock is $63 per share. e.Record the cash dividends of $3.50 per share. f.Record the fair value effects at year-end when the market price of the stock is $67 per share.

3.Prepare journal entries to record the facts in the case, assuming that Jeffrey used the equity method to account for the investment. Jeffrey owns 35 percent of Kevin and Kevin reported $61,000 in income each year.

a.Record the purchase of 4,400 shares of Kevin Company for $259,600. b.Record Jeffrey Corporation's 35% portion of Kevin Company's $61,000 income. c.Record the cash dividends of $3.50 per share. d.Record Jeffrey Corporation's 35% portion of Kevin Company's $61,000 income. e.Record the cash dividends of $3.50 per share. f.Record Jeffrey Corporation's 35% portion of Kevin Company's $61,000 income.