Please record the transactions and re-evaluations (on T accounts or Journal Entries), prepare the profit...
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Accounting
Please record the transactions and re-evaluations (on T accounts or Journal Entries), prepare the profit and loss statement, and create the ending balance sheet. Thank you!
In the opening balance prepared as at 01.11.200X the company BATU has the following finarcial assets: long term investments 20,000(400 shares of A), short term investments 6,000 ( 300 shares of B). During November the company bought: - 200 shares of C for 60 each, where half is a long term investment; other shares are held for resale. - 100 shares of D for 30 each, all as a short term investment. Stock broker's commissions 200. and sold: - 100 shares of B for 22 each; - 20 shares of C for 70 each. Accounting policy: short term investments are valued at the lower of cost of purchase or market value; long term investments are valued at cost of purchase less impairment losses. Required: Prepare the profit and loss statement and the balance sheet valuation of company's securities knowing that, on 31.12.200X the market value of shares was as follows: - Shares of A - for more than 3 months 40 per share, - Shares of B - 23 per share, - Shares of C65 per share, - Shares of D - 19 per share. Ignore income tax
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