Please Solve with Explanation and Do not Give image format Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 inits Allowance for Adjustment to Market.At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method.MJO Common (25,000shares)JKH Preferred (1,900shares)EKH Common (7,500shares)4/3/229/6/22Cost$550,000199,50082,500During 2022 the following events occurred:Sold 3,000 shares of MJO for $75,000.Acquired 1,500 shares of WVO Common for $25 per share.At 12/31/22, the fair values for Kristopher's securities were:MJO Common, $24 per shareJKH Preferred, $103 per shareEKH Common, $13 per shareWVO Common, $27 per shareRequired:Prepare any journal entries required in 2022 to record the securities activity, including any requiredadjusting entries at 12/31/22. Show any calculations.Show the financial statement presentation for all securities activity during 2022.

Investment refers to purchases of securities or any assets which generate income for the entity in…

Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations. Show the financial statement presentation for all securities activity during 2022.

Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations. Show the financial statement presentation for all securities activity during 2022.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
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