Question: Can I get some help on the ones with a red x. This is what I have so far. The first two screenshots are of




Can I get some help on the ones with a red x. This is what I have so far. The first two screenshots are of year 1 and the second two are from year 2.
On November 1 of Year 1, Drucker Co. acquired the following investments equity securities measured at FV-NI. Kelly Corporation 400 shares of common stock (no-par) at $60 per share Keele Corporation 240 shares preferred stock ($10 par) at $20 per share On December 31, 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 the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 80 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities. b. Prepare any adjusting entry needed at December 31, Year 1. Note: If a journal entry isn't required for the transaction, select "N/ADebit" and "N/ACredit" as the account names and leave the Dr. and Cr. answers blank (zero). Debit Credit Date Nov. 1, Year 1 Account Name Investment in Stock Cash 28,800 0 0 28,800 + . 2,240 0 To record purchase of securities. Dec. 31. Year 1 Unrealized Gain or Loss-Income Fair Value Adjustment-Equity Securities To record adjusting entry 2.240 c. Indicate the items and amounts that should be reported on the Year 1 income statement of Drucker and its year-end balance sheet. Assume that the investments are classified as current. Note: Use a negative sign to indicate a loss. Income Statement Year 1 Nov. 1, Year 1 Investment in Stock 28,800 0 Cash 0 28,800 Dec. 31, Year 1 0 To record purchase of securities. Unrealized Gain or Loss-Income Fair Value Adjustment-Equity Securities To record adjusting entry. 2,240 0 2,240 V c. Indicate the items and amounts that should be reported on the Year 1 income statement of Drucker and its year-end balance sheet. Assume that the investments are classified as current. Note: Use a negative sign to indicate a loss. Income Statement Year 1 Other Revenues and Gains Net gain (loss) on equity securities $ (2,240) Balance Sheet, Dec. 31, Year 1 Assets Investment in equity securities $ 26,560 Check On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI, Kelly Corporation 400 shares of common stock (no-par) at $60 per share Keefe Corporation 240 shares preferred stock ($10 par) at $20 per share On December 31, 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 the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 80 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2. Date Dr. Cr + 520 0 520 0 2,000 Account Name Mar. 2, Year 2 Cash Dividend Revenue To record dividends received. Oct. 1. Year 2 Cash Gain on Sale of Investment Investment in Stock To record sale of investment. Dec. 31. Year 2 Unrealized Gain or Loss-Oci Fair Value Adjustment-Equity Securities To adjust the FVA account. . + 0 0 0 80 x 1,920 X . 2,080 0 OX 2,080 X e. Indicate items and amounts that should be reported on the Year 2 income statement and year-end balance sheet Note: Use a negative sign to indicate a loss. To record dividends received. Cash Oct. 1, Year 2 2,000 0 Gain on Sale of Investment 0 80 x Investment in Stock 0 1,920 x 2,080 To record sale of investment. Dec. 31, Year 2 Unrealized Gain or LossOCI Fair Value AdjustmentEquity Securities To adjust the FVA account. 0 X 2,080 x 0 e. Indicate items and amounts that should be reported on the Year 2 income statement and year-end balance sheet. Note: Use a negative sign to cate a loss. Income Statement Year 2 Other Revenues and Gains Dividend revenue 520 (2,000) Net gain (loss) on equity securities Balance Sheet, Dec. 31, Year 2 Assets Investment in equity securities 22,560 Check
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