Use the following accounts;

Cash

Bank

Short-term investments

Loss on sale of short-term investment

-III- (40 p.)

Foreign exchange gain

Foreign exchange loss

Capital

Gain on sale of short-term investment

RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the companys first month:

Date

12/1 12/5

12/10 12/18 Note:

The owner invested $ 200,000 cash for capital.

r@ktas Co., opened deposit account on Dont Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar)

The Company purchased short-term investment with cash for $2,500. The Company sold short-term investment with cash for $2.000

Exchange rate was 1 Euro= 1,4 Dollar at the end of the period.

Requirements:

1- Give the journal entry for each transaction. 2- Post each transaction to T accounts.