PLEASE help with journal entries for year 2 also thank you. 5M Corporation completed the...

80.2K

Verified Solution

Question

Accounting

PLEASE help with journal entries for year 2 also thank you. 5M Corporation completed the following transactions, in the order given, relative to the portfolio of stocks held as equity investments measured at FV-NI.
Year 1
Purchased 330 shares of Starbux Corporation common stock (par value $1) at $50 per share plus a brokerage commission of 4% and transfer costs of $110 on August 1, Year 1.
Purchased 660 shares of Kolgate Corporation Class A common stock (par value $0.50) at $35 per share plus transfer costs of $165 on September 15, Year 1.
Year 2
Purchased 605 shares of Starbux Corporation common stock at $55 per share plus a brokerage commission of 4% and transfer costs of $132 on February 1, Year 2.
Received declared cash dividends of $2.00 per share on the Kolgate Corporation Class A common stock on June 30, Year 2.
Sold 165 shares of Starbux Corporation common stock at $58 per share on August 15, Year 2.
Starbux, common stock
$48
38
$60
50
Journal Entries for Year 1
Journal Entries for Year 2
a. Provide entries for 5M Corporation for the purchases of equity securities in Year 1.
b. Provide entries for 5M Corporation to adjust securities to fair value on December 31, Year 1.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students