Pronghorn Limited, a public company that follows IFRS and has a calendar year end, made the...

 

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Pronghorn Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in 2023. Pronghorn intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the investments using the FV-NI model. This is the first year in which Pronghorn invested in equity securities: 1. 2. On March 20, purchased 5,000 shares of Wu Inc. common shares at $33 per share plus commission of $420. On August 15, purchased 3,000 shares of Xi Inc. common shares at $24 per share plus commission of $370. On June 30, Pronghorn sold 3,000 shares of Wu Inc. at $35 less commission of $600. The December 31, 2023 market value of the Wu shares was $36 and of the XI shares was $23. Prepare the journal entries for the two purchases of investments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Pronghorn Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in 2023. Pronghorn intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the investments using the FV-NI model. This is the first year in which Pronghorn invested in equity securities: 1. 2. On March 20, purchased 5,000 shares of Wu Inc. common shares at $33 per share plus commission of $420. On August 15, purchased 3,000 shares of Xi Inc. common shares at $24 per share plus commission of $370. On June 30, Pronghorn sold 3,000 shares of Wu Inc. at $35 less commission of $600. The December 31, 2023 market value of the Wu shares was $36 and of the XI shares was $23. Prepare the journal entries for the two purchases of investments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.)

Answer rating: 100% (QA)

The journal transactions are given below Date Account Title Debit Credit ... View the full answer