Question
On January 1 , 2020, Starchucks Corporation purchased 20,000 shares of Karfee, Inc. common stock for $30/share, including brokerage commissions. Karfee had 200,000 shares of
On January 1, 2020, Starchucks Corporation purchased 20,000 shares of Karfee, Inc. common stock for $30/share, including brokerage commissions. Karfee had 200,000 shares of common stock outstanding at the time Starchucks purchased its stock from another investor. Karfee common stock was trading at $33/share on December 31, 2020, and $26/share on December 31, 2021. Starchucks classifies its investment in Karfee as an available for sale investment. December 31st is Starchucks fiscal year-end.
Required (submit as a text entry and MUST show the detail of numbers calculated):
- Prepare the journal entry for Starchucks to record the purchase on 1/1/20.
- Prepare the journal entry for Starchucks to mark to market its investment on 12/31/20.
- Prepare the journal entry for Starchucks to mark to market its investment on 12/31/21.
- Prepare Starchucks' balance sheet presentation of its investment in Karfee on 12/31/21.
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
