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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Keitel Corp. had the following securities (all purchased in 2017) in its investment portfolio on
December 31, 2017.
5,000 Alpha common shares
2,000 Beta preferred shares
10,000 Omicron common shares
Cost
$55,500
$571,200
$250,200
Market value, 12/31/2017
$73,200
$559.000
$260,200
In 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 model
without recycling.
A Prepare journal entries to record the sale of Alpha shares.
3
b. Prepare journal entries on December 31, 2018 to adjust the carrying (book) value of the equity
portfolio.
c. Alpha declarcd a dividend of S0.20 per share on April 1, 2018. Prepare the journal entry, Should
the dividend be booked to net income or OCI?

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