Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (1)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (iii)At year-end, adjusted the investment account to fair market value of €40 per share.
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- At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2026? What is the total net income reported in 2026 under each of these methods?Kingbird Donald Inc. acquired 20% of the outstanding common stock of Theresa Ivanhoe Inc. on December 31, 2025. The purchase price was $1,205,000 for 48,200 shares. Ivanhoe Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31,2026 . Ivanhoe reported net income of $692,000 for 2026 . The fair value of Ivanhoe's stock was $28 per share at December 31 ,2026, Assume that the security is a trading security.Agustin Company has the following transactions relating to its investments during 2022. January 5 - Acquired 10,000 shares of Abalos Company for P1,000,000 paying additional P20,000 for brokerage fee and another P5,000 for commission. Received dividends from Abalos declared January 2, 2022 to stockholders of record January 10, 2022, P20,000. How much should the investment account be debited if the shares are held for trading?Prepare the journal entry for the following trading securities investment transactions of Johnson Brothers Department Stores: (i)Purchased 460 Jefferson Foods shares at €31 per share, with the intent of holding the shares for the indefinite future. (ii)Received cash dividend of €1.40 per share on the Jefferson investment. (ii)At year-end, adjusted the investment account to fair market value of €40 per share. (iv)old the Jefferson shares for the market price of €20 per share.
- The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February 24, 20Y7, for $693,000. The fair value of the securities on December 31, 20Y7, is $924,000. a. Journalize the entries for the February 24 purchase and the adjustment to fair value on December 31, 20Y7. If an amount box does not require an entry, leave it blank. 20Y7 Feb. 24 20Y7 Dec. 31 b. How is a unrealized gain or loss for trading investments reported on the financial statements? The unrealized gain or unrealized loss on trading investments is reported on the (or a separate item if significant). Unrealized losses would be in determining net income, while unrealized gains would be in determining net income... c. If the Raiders Inc. securities had been classified as available-for-sale securities, how would the investment be reported on the financial statements? The unrealized gain on available-for-sale investments would be reported as The debit balance of Valuation…On April 1, 2024, Sheridan Company purchased 34,400 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $20 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries) Date 10 Account Titles Debit CreditCan you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,000
- (Equity Securities Entries and Reporting) Satchel Corporation purchases equity securities costing $73,000. At December 31, the fair value of the portfolio is $65,000.InstructionsPrepare the adjusting entry to report the securities properly, assuming that the investments purchased represent less than a 5% interest in the other companies. Indicate the statement presentation of the accounts in your entry.As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000On April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Save for Later Account Titles Debit Credit Attempts: 0 of 1 used Submit Answer
- The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. 2020 Feb. 1 Paid $132,000, plus $200 in transaction fees to purchase a $136,000, four-year, 5.5% bond payable of Capital Inc. dated Feb. 1. Interest is paid seniannually beginning August 1. Har. 29 Bought 112,000 common shares of Regina Ino. for a total of $95,872, plus paid an extra $500 for transaction feen. Hay 7 Regina Inc.'a board of directora declared a total dividend of $537,000 regarding the total 3,500,000 abarca issued and outstanding. The date of record is May 30, payable June 15. June 1 Paid $151,000 including $500 in transaction fees to purchase a five-year, 8.5%, $148,000 bond payable of Yates Corporation. Interest in paid annually each May 30. 15 Received a cheque regarding the dividends declared on May 7. Aug. 1 Received a chegue from Capital Inc. regarding semiannual interest. 1 Sold the Capital Inc. bond at…On April 1, 2024, Sunland Company purchased 44,800 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles く Debit CreditOn January I of Year 1, Steve Company purchased the following securities. Security Type Classification Cost Bond Trading $5,000 B Stock Trading 27,500 Stock Available for sale $10,000 D Bond Available for sale 17,000 E Stock Available for sale 9,200 Steve Company sold all of its investment in Security D for $8,900 on October 31 of Year 1. On December 31 of Year 1, the following fair values were available for Securities A.BC, and E (with Security D having been sold on October 31). Security Type Classification Cost Market Value (end Year 1) A Bond Trading 55,000 $3,200 Stock Trading 27,500 36,700 Stock Available for sale s10,000 $14,000 Stock Available for sale 9,200 6,000 Compute the TOTAL. amount of net UNrealized gain or loss that will be reported in Steve Company's OTHER COMPREHENSIVE INCOME for Year 1. Net gain $8,200 Net gain of $6,000 Net gain $9.000 O Net gain of $7,400 Net gain of $800 FEEDBACK 0/1 (0.0%)
