Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet of the company ABC as at 1.12.2019: ASSETS EQUITY & LIABILITIES Tangible fixed asset (equipment)* 40 000 Shareholders' equity 50 000 Long-term

image text in transcribed
image text in transcribed
The balance sheet of the company ABC as at 1.12.2019: ASSETS EQUITY & LIABILITIES Tangible fixed asset (equipment)* 40 000 Shareholders' equity 50 000 Long-term investments** 4 000 10 000 Revaluation reserve (Company A shares) (in Company A, 200 shares) 30 000 Liabilities Short-term investment 46 000 (in Company B, 50 shares) 20 000 Other assets (including cash) Total assets 100 000 Total equity & liabilities 100 000 *Accumulated depreciation of machine 20 000, useful life 6 years, straight-line method applied. Shares of Company A were revalued upwards at the end of 2018. In December: 1. The company purchased 20 shares of Company D for 200 per share, shares bought for resale. Stock broker's commission was 300. 2. The company sold 100 shares of Company A for 52 per share. Shares were revalued in 2018. 3. The company sold 25 shares of B for 587 per share. 4. On 31.12.2019 the company valued all shares. Accounting policy states that long-term investments and short-term investments are valued at fair value. Required: 1. Open the T-accounts based on the Balance Sheet data. 2. Record all transactions in T-accounts and close all accounts. Fair values at 31.12.20019 Company A - 53 per share D-200 per share Company Company B-592 per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions