E17-18. Please show all workings clearly. E17.18 (LO 2) (Equity Investments-Trading) Swanson plc hasthe following trading investment portfolio on December 31, 2022.Investments (Trading)CostFair Value1,500 ordinary shares of Parker, Inc.£71,500 £ 69,0005,000 ordinary shares of Beilman Company 180,000175,000400 preference shares of Duncan, Inc.60,00061,600£311,500 £305,600All of the investments were purchased in 2022. In 2023, Swansoncompleted the following investment transactions.March Sold the 1,500 ordinary shares of Parker, Inc., @ £45 less fees1of £1,200.April 1 Bought 700 ordinary shares of McDowell Corp., @ £75 plusfees of £1,300.Swanson Company's portfolio of trading investments appeared asfollows on December 31, 2023.Investments (Trading)CostFair Value5,000 ordinary shares of Beilman Company £180,000 £175,000700 ordinary shares of McDowell Company52,50050,400400 preference shares of Duncan, Inc.б0,00058,000£292,500 £283,400InstructionsPrepare 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.

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: following trading investmer Investments…

Business

Accounting

following trading investmer Investments (Trac 1,500 ordinary shares of Parl

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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Question

E17-18. Please show all workings clearly.

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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