Early in its 2017 fiscal year (December 31 yearend), Hayes Company purchased 10,000 shares of Kenyon Corporation

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Early in its 2017 fiscal year (December 31 yearend), 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 no recycling), and transaction costs are capitalized. In September, Kenyon declared and paid a dividend of $1.02 per share, and on December 31, 2017, the fair value of these shares was $271,500. On April 13, 2018, 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, 2017, and
(d) All entries associated with the disposal of the investment on April 13, 2018.

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...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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