McElroy plc has the following portfolio of investments at September 30, 2019, its last reporting date On October 10, 2019, the Horton shares were sold at a price of pound 54 per share In addition, 3,000 ordinary shares of Patriot were acquired at pound 54 50 per share on November 2, 2019 The Decemb...

a 1 October 10 2019 Cash 5000 X 54 270000 Gain on Sale of Investments 55000 Equity Investments 21500 ...

McElroy plc has the following portfolio of investments at September 30, 2019, its last reporting date. On

Question:

McElroy plc has the following of investments at September 30, 2019, its last reporting date.

Trading Investments Horton, Inc. ordinary (5,000 shares) Monty, Inc. preference (3,500 shares) Oakwood Corp. ordinary (1

On October 10, 2019, the Horton shares were sold at a price of £54 per share. In addition, 3,000 ordinary shares of Patriot were acquired at £54.50 per share on November 2, 2019. The December 31, 2019, fair values were Monty £106,000, Patriot £132,000, and Oakwood £193,000. All the investments are classified as trading.
Instructions
a. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading investments in the last quarter of 2019.
b. How would the entries in part (a) change if the investments were classified as non-trading?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...