Answer:
Feb. 17
Dr Investment in Medical 10,100
Cr Cash 10,100
Apr. 1
Dr Investment in Olde 300,000
Cr Cash300,000
Jun. 25
Dr Cash 600
Cr Investment revenue 600
Jun. 30
Dr Investment in Olde 6,000
Cr Investment revenue 6,000
Oct. 1
Dr Investment in Alpha 30,400
Cr Cash 30,400
Dec. 31
Dr Investment in Medical 2,400
Cr Unrealized holding gain on investments 2,400
Dec. 31
Dr Unrealized holding loss on investments6,400
Cr Investment in Alpha 6,400
Explanation:
Jackson Company Journal entries
Feb. 17
Dr Investment in Medical 10,100
[$500 x $20) + $100]
Cr Cash 10,100
Apr. 1
Dr Investment in Olde 300,000
Cr Cash300,000
Jun. 25
Dr Cash 600
(500 x $1.20)
Cr Investment revenue 600
Jun. 30
Dr Investment in Olde 6,000
($20,000 x 30%)
Cr Investment revenue 6,000
Oct. 1
Dr Investment in Alpha 30,400
[(2,000 x $15) + $400]
Cr Cash30,400
Dec. 31
Dr Investment in Medical 2,400
[500 x $25) - $10,100]
Cr Unrealized holding gain on investments 2,400
Dec. 31
Dr Unrealized holding loss on investments 6,400
Cr Investment in Alpha 6,400
[(2,000 x $12) - $30,400]
