On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities. b. Prepare any adjusting entry needed at December 31, Year 1. Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A—Credit" as the account names and leave the Dr. and Cr. answers blank (zero).
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities. b. Prepare any adjusting entry needed at December 31, Year 1. Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A—Credit" as the account names and leave the Dr. and Cr. answers blank (zero).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI.
| Kelly Corporation | 800 | shares of common stock (no-par) at $60 per share |
| Keefe Corporation | 480 | shares |
On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.
Following are the data for the following year (Year 2).
Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.
Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.
Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share.
- Year 1
- Year 2
a. Prepare the entry for Drucker Company to record the purchase of the securities.
b. Prepare any
Note: If a
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