In: Accounting
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.