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Bayae ${}_{\text{T}\text{a}\text{k}\text{o}}$ Investments

During $2013$ the following transactions happened in North Trading Company:

$M$ S $($marketuble security$)$

Jan $10,$ purchase $5,000$ shares of $x$ company at $$12$ per share plus $$200$ as broker fees.

March $1,$ purchase $10,000$ shares of $Y$ company as $$10$ per share plus $$400$ broker fees.

April, purchase $8,000$ shares of $x$ company at $$13$ per share plus $$500$ broker fees.

June, purchase $12,000$ shares of $Z$ company at $$8$ per share plus $$600$ as broker fees.

November Purchase $12,000$ of $x$ company as $$12\mathrm{.}5$ per share plus $$800$ as broker fees.

At December $31,2013$ the market price of X$-$Y$-$Z Company share were $($ $$12\mathrm{.}5-$ $$9\mathrm{.}8-$ $$8\mathrm{.}3)$ per share.

At February $2014$ North Trading Company Sold $16,000$ shares of $x$ company as $$12$ per share and paid $$500$ as broker fees.

Required:

Record the above transactions in North Trading Company books.

Prepare the adjusting entru as noromhar $21,$n$12$

Solution:

Jan $10.($Jan $10,$ purchase $5,000$ shares of $x$ company at $$12$ per share plus $$200$ as broker fees.$)$

Investment costs $=(numberof$ shares $*cost$ per share$)+$ purchase cost $(Broker$ fees$)$

Investment costs $=(5000**$$$12)+$$$200$

Investment costs $=$$$60,200$

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