Keitel Corp. had the following securities (all purchased in 2017) in its investment portfolio onDecember 31, 2017.5,000 Alpha common shares2,000 Beta preferred shares10,000 Omicron common sharesCost$55,500$571,200$250,200Market value, 12/31/2017$73,200$559.000$260,200In 2018, Keitel made the following changes to the portfolio:I On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of $600,2. On April 9, purcbased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080.3. On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of S1,200.On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta$300, Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI modelwithout recycling.A Prepare journal entries to record the sale of Alpha shares.3b. Prepare journal entries on December 31, 2018 to adjust the carrying (book) value of the equityportfolio.c. Alpha declarcd a dividend of S0.20 per share on April 1, 2018. Prepare the journal entry, Shouldthe dividend be booked to net income or OCI? Keitel Corp. had the following securities (all purchased in 2017) in its investment portfolio onDecember 31, 2017.5,000 Alpha common shares2,000 Beta preferred shares10,000 Omicron common sharesCost$55,500$571,200$250,200Market value, 12/31/2017$73,200$559.000$260,200In 2018, Keitel made the following changes to the portfolio:I On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of $600,2. On April 9, purcbased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080.3. On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of S1,200.On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta$300, Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI modelwithout recycling.A Prepare journal entries to record the sale of Alpha shares.3b. Prepare journal entries on December 31, 2018 to adjust the carrying (book) value of the equityportfolio.c. Alpha declarcd a dividend of S0.20 per share on April 1, 2018. Prepare the journal entry, Shouldthe dividend be booked to net income or OCI?

Equity Investment in FVOCI Investment which can be classified into two types FVPL and FVOCI and the…

In 2018, Keitel made the following changes to the portfolio: E On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of S600, 2. On April 9, purchased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080. 3 On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of $1,200, on shares for $10 per share less fees of $1,200 On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta $300; Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI model without recycling. Prepare journal entries to record the sale of Alpha shares

In 2018, Keitel made the following changes to the portfolio: E On Feb. 15, sold 2,400 Alpha shares for $13.50 per share less fees of S600, 2. On April 9, purchased 4,000 Candy Ltd. common shares at $9.00 per share plus fees of $1,080. 3 On Nov. 15, sold 8,000 Omicron shares for $10 per share less fees of $1,200, on shares for $10 per share less fees of $1,200 On December 31, 2018, the fair values per share of the securities were as follows: Alpha S8; Beta $300; Omicron $9; and Candy $21. Keitel accounts for the portfolio using the FV-OCI model without recycling. Prepare journal entries to record the sale of Alpha shares

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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On October 1, 2015, Adoll Company acquired 1,000 shares of its $1 par value stock for $44 per share and held these shares in treasury. On March 1, 2017, Adoll resold all of the treasury shares for $40 per share. Which of the following entries would be recorded when Adoll Company resells the shares of treasury stock? A- Debit Cash $40,000; Debit Loss on Sale of Treasury Stock $4,000; Credit Treasury Stock $44,000 B- Debit Cash $40,000; Debit Additional Paid In Capital $4,000; Credit Common Stock $44,000 C- Debt cash $40,000; Debit Additional Paid in Capital $4,000; Credit Treasury Stock $44,000 D- Debit Cash $40,000' Credit Common Stock $1,000; Credit Additional Paid In Capital $39,000
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SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model. SLC Inc. prepares financial statements every quarter. At Sept 30, 2021, the end of the company’s third quarter, the following information was reported: Investment Cost Fair Value 50,000 Common Shares – Seneca Inc. $215,000 $200,000 3,500 Preferred Shares – Loyalist Inc. $135,000 $140,000 2,000 Common Shares – Algonquin Inc. $180,000 $179,000 Transactions that occurred in the fourth quarter: Oct 8, 2021 The Seneca Shares were sold for $4.30 per share Nov 16, 2021 3,000 common shares of Humber Inc. were purchased at $44.50 per share SLC Inc. pays a 1% commission on purchase and sales of all securities. At the end of the fourth quarter, on December 31, 2021, the fair value of the shares were as follows: Investment Fair Value Loyalist Inc. $106,000 Algonquin Inc. $203,000 Humber Inc. $122,000 Instructions: Prepare the journal entries to record the sale, purchase and…
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