Question

Early in its 2014 fiscal year (December 31 year end), Hayes Company purchased 10,000 shares of Kenyon Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securities were accounted for at FV-OCI (with recycling) and transaction costs are capitalized. In September, Kenyon declared and paid a dividend of $1.02 per share, and on December 31, 2014, the fair value of these shares was $271,500. On April 13, 2015, Hayes sold all the Kenyon shares at a price of $28.10 each, incurring $1,925 in brokerage commissions on the sale. Prepare the entries to record
(a) The purchase of the Kenyon shares,
(b) The receipt of the dividend,
(c) The fair value adjustment at December 31, 2014, and
(d) All entries associated with the disposal of the investment on April 13, 20! 5.


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  • CreatedSeptember 18, 2015
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