FKG Inc. carries the following investments on its books at December 31, 2012, and December 31, 2013. All securities were purchased during 2012. Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2012, and December 31, 2013.
(2.) What net effect would the valuation of these stock investments have on 2012 net income? On 2013 net income?

Question

FKG Inc. carries the following investments on its books at December 31, 2012, and December 31, 2013. All securities were purchased during 2012.  Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2012, and December 31, 2013.
(2.) What net effect would the valuation of these stock investments have on 2012 net income? On 2013 net income?

Quizplus · Accepted Answer

The Answer of FKG Inc. carries the following investments on its books at December 31, 2012, and December 31, 2013. All securities were purchased during 2012.  Required:
(1.) Prepare the necessary journal entries for FKG on December 31, 2012, and December 31, 2013.
(2.) What net effect would the valuation of these stock investments have on 2012 net income? On 2013 net income?

FKG Inc Carries the Following Investments on Its Books at December