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Journal entries for sale and purchase of securities

E3-22 ...
Prepare all the necessary journal entries for ...

E3-23 ...
(a) Prepare the adjusting entry at ... to reprt the securities at fair value.
(b) Show the balance sheet and income statement presentation ... after adjustment to fair value

Please see attachment for complete set of questions.

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All answers and explanations in the attached file in Sheet 1 and Sheet 2
E3-22
Journal Entries for Roscoe Cosmetics
Date Particulars Dr Cr
Mar 18 Marketable Securities 260,000 20000 Shares purchased at $13
Cash 260,000

June 30 Cash 7,500 10% of 75000 would be dividend to
Dividend Revenue 7,500 Roscoe

Dec 31 Unrealized Gains 20,000 $1 gain on 20000 sgares is unrealized
Accumulated Other Comprehensive Income 20,000 the credit goes to Stockholders Equity section

Journal Entries for Juan Inc
Date Particulars Dr Cr
Jan 1 Investment 81,000 This is treated as investment since Juan has
Cash 81,000 significant influence

June 15 Cash 10,500 The dividend would not flow through
Investment 10,500 the income statement

Dec 31 Investment 24,000 30% of ...

Solution Summary

The solution provides journal entries for sale and purchase of securities and the adjustment for fair value

$2.19