On November 1, 2020, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation750 shares of common stock (no-par) at $60 per share. Keefe Corporation-450 shares preferred stock ($10 par) at 520 per share. On December 31, 2020, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for 2021. Mar. 2, 2021 Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 1, 2021 Sold 150 shares of Keefe Corporation preferred stock at $25 per share. Dec 31, 2021 Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Journal Entries and Financial Statement Presentation for 2020 Journal Entries and Financial Statement Presentation for 2021 a. Prepare the entry for Drucker Company to record the purchase of the securities. Date Account Name Dr. Cr. Nov. 1, 2020 Investment in AFS Securities 0 0 0 0 6. Prepare any adjusting entry needed at December 31, 2020, Date Account Name Dec 31, 2020 Dr. Cr. 0 0 0 0 c Indicate the items and amounts that should be reported on the 2020 income statement of Drucker and its year-end balance sheet. Assume that the investments are classified as current. Note: Use a negative sign to indicate a loss. Income Statement 2020 Other Revenues and Gains Net gain (loss) on equity securities $ 2020 Balance Sheet, December 31 Assets Investment in equity securities $ Kelly Corporation750 shares of common stock (no-par) at $60 per share. Keefe Corporation 450 shares preferred stock ($10 par) at $20 per share. On December 31, 2020, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keee Corporation preferred stock, $24. Following are the data for 2021. Mar. 2, 2021 Dividends per share, declared and paid: Kelly Corp. $1, and Keefe Corp., $0.50. Oct. 1, 2021 Sold 150 shares of Keefe Corporation preferred stock at $25 per share. Dec 31, 2021 Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Journal Entries and Financial Statement Presentation for 2020 Journal Entries and Financial Statement Presentation for 2021 d. Prepare the entries required in 2021 to record dividend revenue, the sale of stock, and the fair value adjustment. Update the Fair Value Adjustment account prior to recording any sale. Eliminati Note: List multiple debits or credits (when applicable) in alphabetical order. Date Dr. Cr. Mar. 2, 2021 Cash 0 0 Interest Receivable 0 0 Oct. 1. 2021 Investment in TS 0 0 Fair Value Adjustment--TS 0 Investment in AFS Securities Fair Value Adjustment--AFS Oct. 1, 2021 Investment in HTM Securities 0 0 Investment in Stock 0 0 Fair Value Adjustment--Equity Securities 0 0 Fair Value Adjustment--Fair Value Option Allowance for Credit Losses Dec 31, 207 0 Accumulated Other Comprehensive Income Unrealized Gain or Lass--OCI 0 0 Unrealized Gain or Loss-Income Dividend Revenue e Indicate Interest Revenue n the 2021 income statement and year-end balance sheet. Note: Use Investment Income Inc Loss on Impalrment Other Rever Recovery of Loss on Impairment Loss on Sale of Investment Dividend Gain on Sale of Investment Net gain N/A 2021 Balance Sheet, December 31 Assets Investment in equily securities S
