following trading investmer Investments (Trac 1,500 ordinary shares of Parl
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
E17-18. Please show all workings clearly.
Transcribed Image Text:E17.18 (LO 2) (Equity Investments-Trading) Swanson plc has
the following trading investment portfolio on December 31, 2022.
Investments (Trading)
Cost
Fair Value
1,500 ordinary shares of Parker, Inc.
£71,500 £ 69,000
5,000 ordinary shares of Beilman Company 180,000
175,000
400 preference shares of Duncan, Inc.
60,000
61,600
£311,500 £305,600
All of the investments were purchased in 2022. In 2023, Swanson
completed the following investment transactions.
March Sold the 1,500 ordinary shares of Parker, Inc., @ £45 less fees
1
of £1,200.
April 1 Bought 700 ordinary shares of McDowell Corp., @ £75 plus
fees of £1,300.
Swanson Company's portfolio of trading investments appeared as
follows on December 31, 2023.
Investments (Trading)
Cost
Fair Value
5,000 ordinary shares of Beilman Company £180,000 £175,000
700 ordinary shares of McDowell Company
52,500
50,400
400 preference shares of Duncan, Inc.
б0,000
58,000
£292,500 £283,400
Instructions
Prepare the general journal entries for Swanson for:
a. The 2022 adjusting entry.
b. The sale of the Parker shares.
c. The purchase of the McDowell shares.
d. The 2023 adjusting entry for the trading portfolio.
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