Swanson Company has the following trading investment portfolio on December 31, 2010. All of the investments were
Question:
Swanson Company has the following trading investment portfolio on December 31, 2010.
All of the investments were purchased in 2010. In 2011, Swanson completed the following investment transactions.
March 1 Sold the 1,500 ordinary shares of Parker, Inc., @ £45 less fees 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, 2011.
Instructions
Prepare the general journal entries for Swanson Company for:
(a) The 2010 adjusting entry.
(b) The sale of the Parker shares.
(c) The purchase of the McDowell shares.
(d) The 2011 adjusting entry for the tradingportfolio.
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield