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Jackson Company engaged in the following investment transactions during the current year.    Feb. 17 Purchased 500 shares...

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Accounting

Jackson Company engaged in the following investment transactionsduring the current year.   

Feb. 17

Purchased 500 shares of Medical Company common stock for $20 pershare plus a brokerage commission of $100. (Hint: brokeragecommission 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 Companystock.

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 abrokerage fee of $400. These bonds are classified as securitiesavailable for sale. (Hint: brokerage commission is added to thecost of the investment)

Dec. 31

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

Required:

Prepare the appropriate journal entries to record thetransactions for the year including year-end adjustments. Showcalculations.

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