Castleman Holdings plc had the following investment portfolio at January 1, 2022.

During 2022, the following transactions took place.

1. On March 1, Rogers Company paid a £2 per share dividend.

2. On April 30, Castleman Holdings sold 300 shares of Chance Company for £11 per share.

3. On May 15, Castleman Holdings purchased 100 more shares of Evers Co. at £16 per share.

4. At December 31, 2022, the shares had the following price per share values: Evers £17, Rogers £19, and Chance £8. During 2023, the following transactions took place. 

5. On February 1, Castleman Holdings sold the remaining Chance shares for £8 per share.
6. On March 1, Rogers Company paid a £2 per share dividend.

7. On December 21, Evers Company declared a cash dividend of £3 per share to be paid in the next month.

8. At December 31, 2023, the shares had the following price per shares values: Evers £19 and Rogers £21.

Instructions

a. Prepare journal entries for each of the above transactions.

b. Prepare a partial statement of financial position showing the Investments account at December 31, 2022 and 2023.

c. Briefly describe how the accounting would change if the Evers investment was classified as trading.

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Evers Company 1,000 shares @ £15 £15,000 each Rogers Company 900 shares @ £20 each 18,0o0 Chance Company 500 shares @ £9 each 4,500 Non-trading investments at cost Fair value adjustment 37,500 (7,500) Non-trading investments at fair value £30,000