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On November 1 of Year 1, Drucker co. accuired the following investments in equity secuntes measur in FV-NI Kelly Corporation 2,090 thares of commen aogk

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On November 1 of Year 1, Drucker co. accuired the following investments in equity secuntes measur in FV-NI Kelly Corporation 2,090 thares of commen aogk (nopin) an stes per thare On December 31, the companys yeac-end, the quoted market prices were as followsi Kelly Corporation cominon stock $52 and keefe Corporation areferred stock 524 . Follownig are the data for the followingyear irear 21 Mar. 02: Oividends per share dectared and paid Kelly Corp. 5t, and Keefe Corp. 10.50. Octi 01 Sold 400 shares of Keele Corporition preferred stock at 525 per share. Dec 31: Fair values: Kelly common, 546 per share, Keefe preferred, s2b per sthare. Year 2 a. Prepare the entry for Orucker Company to fecord the purchuse of the securities b. Pregare any adjusting entry needed at Qecember 31 , Year 1. Dec. 31 : Fair values: Kelly common, 546 per share, Keefe preferred, 526 per share: a: Prepare the entry for Drucker Company to record the purchase of the securities. b. Prepare ary adjubing entry needed at December 31 , Year 1 Note if a journal entry isnt required for the transaction, select " N/A-Debit" and "N/A-Credit" as the account names and leave the Dr. and Cr, answers bank (zero) casutied as conem Note:Use a nezatue syrn to indicate a loss c. Indicate the hems and amounts that should be reported on the Year 1 income statement of Drucker and its ycareend balance sticet Assume that the investments are classified as current Note: Use an negatve sign to indicate a loss d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the far value adjustment. Assume that the Fair Value Adjustment account needs to be adiusted for the imvestment portfolio on December 31, Year 2. e. Indicate items and amounts that should be reported on the Year 2 income statement and year-end balance sheet: Note: Use a negative sign to indicate a loss

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