P17.6 (LO2) (Equity Investments) McElroy pic has the following portfolio of investments at September 30, 2019, its last reporting date. Trading Investments Horton, Inc. ordinary (5,000 shares) Monty, Inc-preference (3,500 shares) Oakwood Corp. ordinary (1,000 shares) Cost Fair Value £215,000 £200,000 133,000 140,000 180,000 179,000 On October 10, 2019, the Horton shares were sold at a price of £54 per share. In addition, 3.000 ordinary shares of Patriot were acquired at £54.50 per share on November 2, 2019. The December 31, 2019, fair values were Monty £106,000, Patriot £132,000, and Oakwood £193,000. All the investments are classified as trading. Instructions a. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading investments in the last quarter of 2019. b. How would the entries in part (a) change if the investments were classified as non-trading?
P17.6 (LO2) (Equity Investments) McElroy pic has the following portfolio of investments at September 30, 2019, its last reporting date. Trading Investments Horton, Inc. ordinary (5,000 shares) Monty, Inc-preference (3,500 shares) Oakwood Corp. ordinary (1,000 shares) Cost Fair Value £215,000 £200,000 133,000 140,000 180,000 179,000 On October 10, 2019, the Horton shares were sold at a price of £54 per share. In addition, 3.000 ordinary shares of Patriot were acquired at £54.50 per share on November 2, 2019. The December 31, 2019, fair values were Monty £106,000, Patriot £132,000, and Oakwood £193,000. All the investments are classified as trading. Instructions a. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading investments in the last quarter of 2019. b. How would the entries in part (a) change if the investments were classified as non-trading?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P17.6 (LO2) (Equity Investments) McElroy plc has the following portfolio of
investments at September 30, 2019, its last reporting date.
Cost Fair Value
£215,000 £200,000
Monty, Inc.preference (3,500 shares)
133,000
140,000
Oakwood Corp. ordinary (1,000 shares) 180,000
179,000
Trading Investments
Horton, Inc. ordinary (5,000 shares)
On October 10, 2019, the Horton shares were sold at a price of £54 per share. In
addition, 3,000 ordinary shares of Patriot were acquired at £54.50 per share on
November 2, 2019. The December 31, 2019, fair values were Monty £106,000,
Patriot £132,000, and Oakwood £193,000. All the investments are classified as
trading.
Instructions
a. Prepare the journal entries to record the sale, purchase, and adjusting
entries related to the trading investments in the last quarter of 2019.
b. How would the entries in part (a) change if the investments were classified
as non-trading?
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