please explain to me in clear steps how to solve this question. ØUESTION 3Company had $15,000 short term investments (15,000 shares at 1$ each) and $2,000 allowance to adjust STIto mv debit balance as of the beginning of the year.During the year, the following shares were sold at $5,000.3,000 shares with a cost of $1 each.At the end of the year, the remaining shares were worth $16,500,Record the sale of the shares and do the adjusting entry at the end of the year.

Calculation of additional Capital paid in Share sold worth = $5000 Less: Cost of…

Answered: During the year, the following shares…

Business

Accounting

During the year, the following shares were sold at $5,000. 3,000 shares with a cost of $1 each. 16500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

please explain to me in clear steps how to solve this question.

ØUESTION 3
Company had $15,000 short term investments (15,000 shares at 1$ each) and $2,000 allowance to adjust STI
to mv debit balance as of the beginning of the year.
During the year, the following shares were sold at $5,000.
3,000 shares with a cost of $1 each.
At the end of the year, the remaining shares were worth $16,500,
Record the sale of the shares and do the adjusting entry at the end of the year.

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