Ex. 187
Trent Corporation's statement of financial position at December 31, 2013, showed the following:
Short-term investments, at fair value€46,500
Trent Corporation's trading securities portfolio of investments consisted of the following atDecember 31, 2013:
Security Number of Shares Cost
Carey Ordinary Shares200€30,000
Adler Preference Shares4006,000
Hill Ordinary Shares300 9,000
€45,000
Ex. 187(Cont.)
During 2014, the following transactions took place:
Feb.5 Sold 50 ordinary shares of Carey for €8,000.
Mar.30 Purchased 25 ordinary shares of Hill for €950.
Sept.9 Purchased 50 ordinary shares of Hill for €2,000.
At year end on December 31, 2014, the fair values per share were:
Fair Value Per Share
Carey Ordinary Shares€158.00
Adler Preference Shares€14.00
Hill Ordinary Shares€26.00
Instructions
(a)Prepare the journal entries to record the 2014 share transactions.
(b)On December 31, 2014, prepare any adjusting entry that might be necessary relative to the trading securities portfolio.
(c)Show how the share investments will appear on Trent Corporation's statement of financial position at December 31, 2014.