Solved

Direct Solutions Held Two Securities 1Prepare Journal Entries for the Investment in Bucket Organization,Inc

Question 36

Essay

Direct Solutions held two securities.Direct Solutions purchased 100 Bucket Organization,Inc.,securities on January 1,2X09 for $15 per share and classified it as a trading security and purchased 80 Sunk Options Company securities on the same day for $34 per share and classified it as an available-for-sale security.Market values for both securities as of December 31,for 2X09,2X10,2X11,2X12 follow.
 Bucket Organiz  Sunk Options  Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31, 2X092X102X112X121713151432313435\begin{array}{l}\begin{array}{l}\\\\\\\text { Bucket Organiz } \\\\\text { Sunk Options }\end{array}\begin{array}{llll}\text { Dec. 31, }&\text { Dec. 31, }&\text { Dec. 31, }&\text { Dec. 31, }\\\hline 2X09&2X10&2X11&2X12 \\\hline \\17 & 13 & 15 & 14 \\\\32 & 31 & 34 & 35\end{array}\end{array}
1.Prepare journal entries for the investment in Bucket Organization,Inc.as of
a.December 31,2X09.
b.December 31,2X10.
c.December 31,2X11.
d.December 31,2X12.
2.Prepare journal entries for the investment in Sunk Options Company as of the dates in (1)above.
3.Where would gains and losses recorded in (1)and (2)above be reported for:
a.Bucket Organization,Inc.?
b.Sunk Options Company?

Correct Answer:

verifed

Verified

1.
3.a.Income statement for Bucket Orga...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents