Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kamloops Inc. sells 1,500 common shares being held as a trading investment. The shares were acquired seven months ago at a cost of $14 a
Kamloops Inc. sells 1,500 common shares being held as a trading investment. The shares were acquired seven months ago at a cost of $14 a share. Kamloops sold the shares for $16 a share. The entry to record the sale is:
a.
Dr. Cash 24,000 Cr. Gain on Sale of Trading Investment 3,000 Cr. Trading Investment 21,000
b.
Dr. Trading Investment 24,000 Cr. Gain on Sale of Trading Investment 3,000 Cr. Cash 21,000
c.
Dr. Cash 24,000 Cr. Trading Investment 24,000
d.
Dr. Cash 21,000 Cr. Gain on Sale of Trading Investment 3,000 Cr. Trading Investment 24,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started