The following shares were held by Roxby Pty Ltd at 30 June 2016. 1. Prepare the journal

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The following shares were held by Roxby Pty Ltd at 30 June 2016.

Share Riley Lid Blytheswood Lid Roland Ltd Total Market $ Cost $ 115000 80000 15000 210000 245000 110000

1. Prepare the journal entry for 30 June 2016 to reduce the shares to the lower of cost or net realisable value.
2. What is the reasoning behind this entry? How would it be reflected in the financial statements?

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Financial Accounting An Integrated Approach

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Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

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Question Posted: Jan 24, 2024 01:00 AM

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The following shares were held by Roxby Pty Ltd at 30 June 2016. 1. Prepare the journal

Question:

Share Riley Lid Blytheswood Lid Roland Ltd Total Market $ Cost $ 115000 80000 15000 210000 245000 110000 90000 45 000

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To answer your question we will follow two steps as you outlined preparing the journal entry to reflect the shares at the lower of cost or net realisable value and discussing the reasoning behind such ...View the full answer

Financial Accounting An Integrated Approach

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