Swanson plc has the following trading investment portfolio on December 31, 2022.

All of the investments were purchased in 2022. In 2023, 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, 2023.

Instructions

Prepare the general journal entries for Swanson for:

a. The 2022 adjusting entry.

b. The sale of the Parker shares.

c. The purchase of the McDowell shares.

d. The 2023 adjusting entry for the trading portfolio.

Transcribed Image Text:

Investments (Trading) Cost Fair Value 1,500 ordinary shares of Parker, Inc. 5,000 ordinary shares of Beilman Company 180,000 £ 71,500 £ 69,000 175,000 400 preference shares of Duncan, Inc. 60,000 61,600 £311,500 £305,600