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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- 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
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 requiredadjusting entries at 12/31/22. Show any calculations. - Show the financial statement presentation for all securities activity during 2022.
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