At the end of 200X, Singer Corporation owned equity securities (common stock) in five separate companies, all of which were acquired during 200X. The cost basis, dividends received during the year, and the market values at year end are as follows:
(In Thousands) Cost Basis Market Value Dividends Alpha Company $ 9,000 $ 11,000 $ 200 Boyd Company 7,500 7,000 -0-Common Company 8,700 6,300 100 Druid Company 5,600 8,500 100 Ether Company 44,200 42,300 200
All of these securities are actively traded on open exchanges. Alpha and Boyd are classified as trading securities, Common & Druid are classified as available for sale. Ether is classified as an Equity Investment. Singer's share of Equity represent 30% of Ether's outstanding common stock.
Required: 1) Prepare the journal entries, in good form, required to record the purchase of the stocks (ignore dates).
2) Prepare the journal entries required to record the receipt of the dividends.
3) Prepare the journal entries at year end to record the change in FMV's of the stocks at year end. 4) Ether reported $100,000 in net income. 5) How would the unrealized gains/losses be reported on Singer's Balance Sheet and Income Statement?