Kenseth Company has the following securities in its portfolio on December 31, 2025. None of these investments

Question:

Kenseth Company has the following securities in its portfolio on December 31, 2025. None of these investments are accounted for under the equity method.image



All of the securities were purchased in 2025.


In 2026, Kenseth completed the following securities transactions.image


Kenseth’s portfolio of equity securities appeared as follows on December 31, 2026.image



Instructions


Prepare the general journal entries for Kenseth Company for:


a. The 2025 adjusting entry.


b. The sale of the Gordon stock.


c. The purchase of the Earnhart stock.


d. The 2026 adjusting entry for the portfolio.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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