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. |
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April 1 | Bought 30,000 of the 100,000 outstanding shares of Olde |
| Company for $300,000. |
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June 25 | Received a $1.20 per share dividend on Medical Companystock. |
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June 30 | Olde Company reported second-quarter profits of $20,000. |
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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) |
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Dec. 31 | Medical Co. shares are selling for $25 and Alpha bonds areselling for $12. |
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Required:
Prepare the appropriate journal entries to record thetransactions for the year including year-end adjustments. Showcalculations.
