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Jackson Company engaged in the following investment transactions during the current year.    Feb. 17 Purchased...

Jackson Company engaged in the following investment transactions during the current year.   

Feb. 17

Purchased 500 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. (Hint: brokerage commission is added to the cost of the investment)

Jackson does not have significant influence over Medical.

April 1

Bought 30,000 of the 100,000 outstanding shares of Olde

Company for $300,000.

June 25

Received a $1.20 per share dividend on Medical Company stock.

June 30

Olde Company reported second-quarter profits of $20,000.

Oct. 1

Purchased 2,000 bonds of Alpha Company for $15 per bond plus a brokerage fee of $400. These bonds are classified as securities available for sale. (Hint: brokerage commission is added to the cost of the investment)

Dec. 31

Medical Co. shares are selling for $25 and Alpha bonds are selling for $12.

Required:

Prepare the appropriate journal entries to record the transactions for the year including year-end adjustments. Show calculations.

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ekkarill92 answered 1 year ago
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