Question

Branson Today Publishers completed the following investment transactions during 2018 and 2019 Click the icon to view the transactions) Requirements 1. Journal Branson Today's investment transactions. Explanations are not required. 2 On December 31, 2018. how would the Lovely stock bew ed and at what value would be reported on the balance sheet? Requirement. Jou w 's transactions Explanations are not required. Recordobest, then crede Exclude explanations from journal entre no entry is required, select "No entry ured on the first line of the Account column and save the remaining cells blank.) Dec.6.2018: Purchased 1.000 hores of Lovely stock at a price of $20.00 per share, intending to sell the investment next month. Branson did not have significant influence over Lovely. Date Accounts Debit Credit Dec Dec 23, 2018 Rec h end of 1.50 per share on the lovely wock

Answer 1

Debit Credit Requirement 1 Date Particulars 2018 December 06 Investments in Lovely Stock Account (Short Term Investments) To Cash Account 20000 20000 December 23 Cash Account To Dividend Income 1500 1500 1000 1000 December 23 Unrealised Loss on Investments To Investments in Lovely Stock Account (Short Term Investments) 2019 January 27 Cash Account To Investments in Lovely Stock Account To Profit & Loss Account 1970 19000 700 Requirement 2 Lovely Stock would be classified as Current Investments of $19000 on the Balance Sheet Date, i.e. 31st December 2018