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The balance sheet of the company Goofy as at 1.12.2019: ASSETS EQUITY & LIABILITIES Long-term investments 30 000 Shareholders' equity (in Company A, 15 000
The balance sheet of the company Goofy as at 1.12.2019: ASSETS EQUITY & LIABILITIES Long-term investments 30 000 Shareholders' equity (in Company A, 15 000 shares) 20 000 Short-term investments 12 000 Liabilities 30 000 (in Company B, 100 shares) Cash in the bank and on hand 8 000 Total assets 50 000 Total equity & liabilities 50 000 Fair value at balance sheet: Company A - 3 per share and Company C - 16 per share. In December: 1. The company purchased on deferred payment 200 shares of Company C for 17 per share, half bought as a long- term investment and half as bought for sale. 2. The company sold for cash all shares of Company B at a total value of 18 000. Additional stock broker's commission for the transaction was 2 000. It was paid immediately. The company sold on deferred payment short-term investment in Company C for 15 per share. 3. Required: 1. Open the T-accounts based on the Balance Sheet data. 2. Record all transactions in T-accounts and close all accounts. 3. Value investments: Long-term investments are valued at purchase cost-impairment and Short-term investments are valued at fair value
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