Swanson plc has the following trading investment portfolio on December 31, 2019.

All of the investments were purchased in 2019. In 2020, 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, 2020.

Instructions
Prepare the general journal entries for Swanson Company for:
a. The 2019 adjusting entry.
b. The sale of the Parker shares.
c. The purchase of the McDowell shares.
d. The 2020 adjusting entry for the trading portfolio.

Transcribed Image Text:

Investments (Trading) 1,500 ordinary shares of Parker, Inc. 5,000 ordinary shares of Beilman Corp. 180,000 400 preference shares of Duncan, Inc. Cost Fair Value £ 71,500 £ 69,000 175,000 60,000 61,600 £311,500 £305,600 Investments (Trading) 5,000 ordinary shares of Beilman Corp. £180,000 £175,000 700 ordinary shares of McDowell Corp. 400 preference shares of Duncan, Inc. Fair Value Cost 52,500 50,400 60,000 58,000 £292,500 £283,400