Entity A has purchased an investment of 15,000 shares on 1 August 2019 at a cost of $7.75 each. Entity A intends to sell these shares in the short term, and are holding them for trading purposes. Transaction cost on the purchase amounted to $1,500. At the year-end of 30 September 2019, these shares were now worth $8.50 each. On 15 October 2019, these shares were worth $8.00 each. All shares were sold at $125,600. REQUIRED: Provide journal entries for Entity A from 1 August 2019 to 15 October 2019 in accordance with relevant accounting standards. ACCOUNTS FOR INPUT: | Financial asset (Amortised Cost) | Financial asset (FVTPL) | Financial asset (FVTOCI) | | Financial liability | Equity instrument | Transaction cost | Bank | Loss allowance | Impairment loss | | Gain on remeasurement (P/L) | Loss on remeasurement (P/L) | Gain on remeasurement (OCI) | Loss on remeasurement (OCI) | | Payable | Receivable | Other income | Other expense | Reclassification (P/L) | Reclassification (OCI) | | Interest expense | Interest revenue | Loss on disposal | Gain on disposal | Retained earnings | No entry
Entity A has purchased an investment of 15,000 shares on 1 August 2019 at a cost of $7.75 each.
Entity A intends to sell these shares in the short term, and are holding them for trading purposes. Transaction cost on the purchase amounted to $1,500.
At the year-end of 30 September 2019, these shares were now worth $8.50 each.
On 15 October 2019, these shares were worth $8.00 each. All shares were sold at $125,600.
REQUIRED:
Provide journal entries for Entity A from 1 August 2019 to 15 October 2019 in accordance with relevant accounting standards.
ACCOUNTS FOR INPUT:
| Financial asset (Amortised Cost) | Financial asset (FVTPL) | Financial asset (FVTOCI) |
| Financial liability | Equity instrument | Transaction cost | Bank | Loss allowance | Impairment loss |
| Gain on remeasurement (P/L) | Loss on remeasurement (P/L) | Gain on remeasurement (OCI) | Loss on remeasurement (OCI) |
| Payable | Receivable | Other income | Other expense | Reclassification (P/L) | Reclassification (OCI) |
| Interest expense | Interest revenue | Loss on disposal | Gain on disposal |
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