QUESTION $1$

Entity A purchased an investment of $125,000$ shares on $1$ August $2023$ at a cost of $$8\mathrm{.}35$ each.

Entity A intends to sell these shares in the short term and is holding them for trading purposes. Transaction cost on the purchase amounted to $$11,725.$

At the year$-$end of $30$ September $2023,$ these shares were now worth $$9\mathrm{.}85$ each.

On $15$ October $2023,$ these shares were worth $$8\mathrm{.}75$ each. All shares were sold at $$1,725,300.$

REQUIRED:

Provide journal entries for Entity A from $1$ August $2023$ to $15$ October $2023$ in accordance with relevant accounting standards.

ACCOUNTS FOR INPUT:

$|$ Financial asset $($Amortised Cost$)|$ Financial asset $($FVTPL$)|$ Financial asset $($FVTOCI$)|$

$|$ Financial liability $|$ Equity instrument $|$ Transaction cost $|$ Bank $|$ Loss allowance $|$ Impairment loss $|$ Reversal of impairment loss $|$

$|$ Gain on remeasurement $(\frac{P}{L})|$ Loss on remeasurement $(\frac{P}{L})|$ Gain on remeasurement $(OCl)|$ Loss on remeasurement $(OCl)|$

$|$ Payable $|$ Receivable $|$ Other income $|$ Other expense $|$ Reclassification $($P$/$L$)|$ Reclassification $($OCl$)|$

$|$ Interest expense $|$ Interest revenue $|$ Loss on disposal $|$ Gain on disposal $|$ Retained earnings $|$ No entry $|$

ANSWERS:

Journal Entries:

Date

$1-$Aug$-23$

$30-$Sep$-23$

$15-$Oct$-23$

$15-$Oct$-23$

Account Name

Debit $($$$)$

Credit $($$$)$

Hints For Sequence

Non$-$Asset. Judge Dr$/$Cr$.$

Judge $D$r$/$Cr

Non$-$Asset. Judge Dr$/$Cr$.$

Judge $D$r$/$Cr$.$