Question
The following information is available for Sheridan plc at December 31, 2022, regarding its investments. Securities Cost Fair Value 3,000 ordinary shares of Petty Company
The following information is available for Sheridan plc at December 31, 2022, regarding its investments.
| Securities | Cost | Fair Value | ||
|---|---|---|---|---|
| 3,000 ordinary shares of Petty Company | 37,000 | 44,300 | ||
| 800 preference shares of Dowe Inc. | 27,000 | 23,600 | ||
| 64,000 | 67,900 |
(a) Prepare the adjusting entry (if any) for 2022, assuming the investments are classified as trading. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(b) Prepare the adjusting entry (if any) for 2022, assuming the investments are classified as non-trading. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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
The Love Audit
Authors: Annah Conwell
1st Edition
B0B9SMDYNM, 979-8843874452
