On March 10 2014 General Solutions Inc purchased 5 000 of
On March 10, 2014, General Solutions Inc. purchased 5,000 of MicroTech's common shares for $ 50 per share. The following information pertains to MicroTech's price per share:
Date Price
31/ 12/ 2014 ...........................$ 55
31/ 12/ 2015 ........................... 40
31/ 12/ 2016 ........................... 42
General Solutions sold its investment in MicroTech's shares on September 12, 2017, at a price of $ 39 per share.
Required:
1. Assume that management purchased the shares for speculative purposes and recorded this transaction as an investment at FVTPL. Prepare any journal entries that are required by the facts presented in this case.
2. Assume that management classified MicroTech's shares as an investment available for sale. Prepare any journal entries that are required by the facts presented in this case.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help