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

question 65

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.
$\begin{array}{l}\begin{array}{l}\\\\\\\text { Bucket Organiz } \\\\\text { Sunk Options }\end{array}\begin{array}{llll}\text { Dec. 31, }&\text { Dec. 31, }&\text { Dec. 31, }&\text { Dec. 31, }\\\hline 2X09&2X10&2X11&2X12 \\\hline \\17 & 13 & 15 & 14 \\\\32 & 31 & 34 & 35\end{array}\end{array}$
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?

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Definitions:

Psychogenic Disorder

A disorder with psychological origins, where mental factors play a significant role in developing or causing physical symptoms.

Somatogenic Disorder

A mental disorder that is believed to have a physical, biological basis or cause.

Paranoia

A mental condition characterized by delusions of persecution or grandeur, often without a reasonable basis.

Somatogenic Hypothesis

The theory that mental disorders are caused by biological factors or physical processes within the body, as opposed to psychological or social factors.