DeNault Aircraft Corporation acquired the following equity investments at the beginning of year 1 to be held

Question:

DeNault Aircraft acquired the following equity investments at the beginning of year 1 to be held in an available- for- sale portfolio.

DeNault Aircraft Corporation acquired the following equity investments at the

Share prices at the end of years 1 and 2 are presented below.

Required
a. Prepare the journal entry to record the acquisition of the investments.
b. Prepare the journal entry to record the end of year 1 adjusting entry for the available- for- sale portfolio.
c. Assume that DeNault sells 35,000 Yan- Co shares for $ 23 per share at the beginning of year 2. Prepare the journal entry required to record the sale. DeNault does not adjust the fair value adjustment account at this time.
d. Prepare the journal entry to record the year 2 adjusting entry.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...