Painter Ltd purchased 90 000 shares in Easel Ltd on the 1 July 2020, at a price of $3.50 each. The Broker charged a fee of $7 000 for processing the transaction. On 30 June 2021 the closing market price of the Easel Ltd shares was $5.20. Painter Ltd does not intend to hold the shares for trading and does not make the fair value through other comprehensive income election (FVOCI).

Required:

Prepare the journal entries for Painter Ltd to account for the initial acquisition of the shares on 1 July 2020, and the subsequent re-measurement at the end of the financial year on 30 June 2021.

Answer rating: 100% (QA)

To prepare the journal entries for Painter Ltd we need to account for the initial acquisition of sha... View the full answer