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please help me solve! i'm lost! On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV.Ni. On
please help me solve! i'm lost!
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV.Ni. On December 31 , the company's year-end, the quoted market prices were as follows Kelly Corporation common stock, 552 , and Keefe Corporation preferred stock, $24. Following are the data for the following year (rear 2 Mar. 02: Dividends per share, declared and paid: Kelly Corp, 31 , and Keefe Corp, 50,50 . Oct. 01:Sold 160 shares of Keefe Corporation preferred stock at 525 per share. Dec. 31: Fair values: Kelly common, 546 per share, Keefe preferred, $26 per share. Vear2 a. Prepare the entry for Drucker Company to record the purchase of the securties b. Piepare any adjusting entry needed at December 31, Vear 1. Note. If a journal entry isnt required for the transaction, select 'N/A-Debic" and N/A - Credit as the account names and leave the Dr; and Cr, answers blank (zero) 2. Prepare the entry for Drucker Company to recard the purchase of the securives. b. Prepure any adjusting entry needed at December 31 , Year 1. Note: if a journal entry isn't required for the transaction, selpct "N/A-Debir" and "N/A-Credt" as the account names and leave the Dr. and Cr, answers blank irerol c. Indicate the items and ameunts that should be reported on the Year 1 income statement of Orucher and its yearend balance sheet. Assume that the investinents are classified an current. Note: Use a negative vgn to mdicate a lors. d. Prepare the entries tequired in Yest 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the fair Value Adjustment account needs to be adfugted for the investment portfolib 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 Step by Step Solution
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