Recording and Reporting Equity Investment: FV-NI Adjust FVA at Year-End On November 1, 2020, Drucker Co acquired the following investments in equity securities measured at FV-NI. Kelly Corporation-1,000 shares of common stock (no par) at $60 per share. Keefe Corporation-600 shares preferred stock (S10 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 Keefe Corporation preferred stock, $24. Following are the data for 2021. Mar. 2, 2021 Dividends per share, declared and paid: Kelly Corp., 91, and Keefe Corp., $0.50. Oct. 1, 2021 Sold 200 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 0 0 0 0 b. Prepare any adjusting entry needed at December 31, 2020. Date Dec 31, 2020 Account Name Dr. Cr. e 0 0 0 0 ement of Drucker and its year-end balance sheet. c. Indicate the items and amounts that should be reported on the 2020 income ste 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 0 2020 Balance Sheet, December 31 Assets Investment in equity securities $ 0 Check el Recording and Reporting Equity Investment: FV-NI Adjust FVA at Year-End On November 1, 2020, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation1,000 shares of common stock (no-par) at $60 per share. Keefe Corporation-600 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 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 200 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. Assume that the Fair Value Adjustment account is adjusted for the investment portfolio on December 31, 2021. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Mar. 2, 2021 . Date Dr. Cr. 0 0 O Oct. 1.2021 0 0 0 0 0 0 0 Dec 31, 2021 0 0 0 0 e Indicate items and amounts that should be reported on the 2021 income statement and year-end balance sheet. Note: Use a negative sign to indicate a loss. Income Statement 2021 Other Revenues and Gains Dividend revenue $ 0 Net gain (loss) on equity securities S 0 Balance Sheet, December 31 2021 Assets Investment in equity Securities $ 0 Check
