2.99 See Answer

Question: Kennedy Company has the following portfolio of

Kennedy Company has the following portfolio of available-for-sale securities at December 31, 2012.
Kennedy Company has the following portfolio of available-for-sale securities at December 31, 2012.


Instructions
(a) What should be reported on Kennedy’s December 31, 2012, balance sheet relative to these long-term available-for-sale securities?
On December 31, 2013, Kennedy’s portfolio of available-for-sale securities consisted of the following common stocks.


At the end of year 2013, Kennedy Company changed its intent relative to its investment in Frank, Inc. and reclassified the shares to trading securities status when the shares were selling for $8 per share.
(b) What should be reported on the face of Kennedy’s December 31, 2013, balance sheet relative to available-for-sale securities investments? What should be reported to reflect the transactions above in Kennedy’s 2013 income statement?
(c) Assuming that comparative financial statements for 2012 and 2013 are presented, draft the footnote necessary for full disclosure of Kennedy’s transactions and position in equity securities.
Instructions (a) What should be reported on Kennedy’s December 31, 2012, balance sheet relative to these long-term available-for-sale securities? On December 31, 2013, Kennedy’s portfolio of available-for-sale securities consisted of the following common stocks.
Kennedy Company has the following portfolio of available-for-sale securities at December 31, 2012.


Instructions
(a) What should be reported on Kennedy’s December 31, 2012, balance sheet relative to these long-term available-for-sale securities?
On December 31, 2013, Kennedy’s portfolio of available-for-sale securities consisted of the following common stocks.


At the end of year 2013, Kennedy Company changed its intent relative to its investment in Frank, Inc. and reclassified the shares to trading securities status when the shares were selling for $8 per share.
(b) What should be reported on the face of Kennedy’s December 31, 2013, balance sheet relative to available-for-sale securities investments? What should be reported to reflect the transactions above in Kennedy’s 2013 income statement?
(c) Assuming that comparative financial statements for 2012 and 2013 are presented, draft the footnote necessary for full disclosure of Kennedy’s transactions and position in equity securities.
At the end of year 2013, Kennedy Company changed its intent relative to its investment in Frank, Inc. and reclassified the shares to trading securities status when the shares were selling for $8 per share. (b) What should be reported on the face of Kennedy’s December 31, 2013, balance sheet relative to available-for-sale securities investments? What should be reported to reflect the transactions above in Kennedy’s 2013 income statement? (c) Assuming that comparative financial statements for 2012 and 2013 are presented, draft the footnote necessary for full disclosure of Kennedy’s transactions and position in equity securities.





Transcribed Image Text:

Per Share Percent Security Quantity Interest Cost Price $16 Frank, Inc. Ellis Corp. Mendota Company 2,000 shares 5,000 shares 4,000 shares 8% $11 14% 23 19 2% 31 24 Per Share Percent Interest Security Quantity Cost Price Ellis Corp. Mendota Company Mendota Company 5,000 shares 14% $23 $28 4,000 shares 2% 31 23 2,000 shares 1% 25 23


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2.99

See Answer