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.
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
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Transcribed Image Text: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.
MJO Common (25,000
shares)
JKH Preferred (1,900
shares)
EKH Common (7,500
shares)
4/3/22
9/6/22
Cost
$550,000
199,500
82,500
During 2022 the following events occurred:
Sold 3,000 shares of MJO for $75,000.
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.
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