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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. Show the financial statement presentation for all securities activity during 2022.

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. Show the financial statement presentation for all securities activity during 2022.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. 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:

 

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

 

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