During the fourth quarter of 2020, Dorsey Enterprises Corp. decided to invest excess cash in the equity securities of “blue chip” companies. Dorsey Enterprises Corp. engaged in the following transactions relating to its investments and obtained information about its investment holdings as detailed below.
Prepare the entries in general journal form to record the investment transactions of Dorsey Enterprises Corp. and properly report the investments in the GAAP financial statements for 2020 as well as additional transactions in 2021. Present any supporting calculations in the spaces provided.
Be sure to provide an explanation of the effect of any transaction that did not require a formal journal entry. (4 points each except when otherwise noted)
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Answer:
Dorsey Enterprises Corp
General Journal of Equity Investment
During the fourth quarter of 2020, Dorsey Enterprises Corp. decided to invest excess cash in the...
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