Key Company purchased 800 shares of Franklin Company stock at a total cost of $ 7,560 on 2010 July 1. At the end of the accounting year (2010 December 31), the market value for these shares was $ 7,360. By 2011 December 31, the market value had risen to $ 7,770. This stock is the only marketable equity security that Key Company owns. The company classifies the securities as available for sale securities. Give the entries necessary at the date of purchase and at 2010 December 31, and 2011.

Key Company purchased 800 shares of Franklin Company stock at a total cost of $ 7,560 on 2010 July 1. At the end of the accounting year (2010 December 31), the market value for these shares was $ 7,360. By 2011 December 31, the market value had risen to $ 7,770. This stock is the only marketable equity security that Key Company owns. The company classifies the securities as available for sale securities. Give the entries necessary at the date of purchase and at 2010 December 31, and 2011.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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