Journal Enties using the FV-NI Model:
Date | Account Title and Explanation | Debit $ | Credit $ |
Jan.15 | Investment in Shares of Nirmala Corp. (8,100*$30.10) | 243,810 | |
Investment Income / Loss | 1,782 | ||
Cash | 245,592 | ||
(To record investment in Nirmala corp.) | |||
April 1 | Investment in Shares of Oxana Corp. (4,500*$47) | 211,500 | |
Investment Income / Loss | 3,033 | ||
Cash | 214,533 | ||
(To record investment in Oxana corp.) | |||
Sept.10 | Investment in Share of WTA Corp. (6,300*$23.90) | 150,570 | |
Inveatment Income / Loss | 2,619 | ||
Cash | 153,189 | ||
(To record investment in WTA corp.) | |||
May 20 | Cash | 88,965 | |
Investment in Shares of Nirmala Corp.(2,700*$32) | 86,400 | ||
Investment Income / Loss | 2,565 | ||
(To record sale of 2,700 shares of Nirmala corp.) | |||
Dec.31 | Investment in Shares of Oxana corp. | 13,500 | |
Investment in Shares ofWTA corp. | 6,930 | ||
Investment in Shares of Nirmala Corp. | 16,740 | ||
Investment Income or Loss (Working) | 3,690 | ||
(To record year end adjustment) |
Working:
Adjustment at the year end:
Particulars | Cost | Fair Value | Difference | |
Nirmala corp. | (243,810/8,100)*5,400 | 162,540 |
145,800 (5,400*$27) |
(16,740) |
Oxana corp. | 211,500 |
225,000 (4,500*$50) |
13,500 | |
WTA corp. | 150,570 |
157,500 (6,300*$25) |
6,930 | |
TOTAL | 524,610 | 528,300 | 3,690 |
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