1) Oman LLC is a company with a December 31 year end. On January 1, 2015, the company acquires 3,000 shares of Abu Hasan LLC at a cost of OMR 100 per share. Transaction costs total OMR 3000. The investment does not give Oman LLC influence over, or control of Abu Hasan LLC. Oman LLC classifies these shares as held for trading. On December 31, 2015, the fair value of the Abu Hasan shares has increased to OMR 120 per share. The Abu Hasan LLC shares did not declare or pay any dividends during 2015. On March 1, 2016, Oman LLC sells all of the Abu Hasan LLC shares for OMR 118 per share. Transaction costs for the disposal are OMR 3100.Prepare Journal Entries in the books of Oman LLC

1) Oman LLC is a company with a December 31 year end. On January 1, 2015, the company acquires 3,000 shares of Abu Hasan LLC at a cost of OMR 100 per share. Transaction costs total OMR 3000. The investment does not give Oman LLC influence over, or control of Abu Hasan LLC. Oman LLC classifies these shares as held for trading. On December 31, 2015, the fair value of the Abu Hasan shares has increased to OMR 120 per share. The Abu Hasan LLC shares did not declare or pay any dividends during 2015. On March 1, 2016, Oman LLC sells all of the Abu Hasan LLC shares for OMR 118 per share. Transaction costs for the disposal are OMR 3100.Prepare Journal Entries in the books of Oman LLC

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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