Question

Your answer is partially correct. Following is information for Bramble Ltée's investments held for trading. Bramble is a public company and has a December 31 yes end. 2021 Sept. 28 Purchased 2,700 shares of Cygman Limited for $38 per share. Oct. 1 Purchased $228,000 of Rauk Inc. 4% bonds at face value. The bonds pay interest semi-annually on April 1 and Octobe Nov. 12 Sold 1,400 Cygman shares for $40 per share. Dec. 1 Received $1.50 per share dividend from Cygman. 31 Cygman shares were trading at $36 per share and the Rauk bonds were trading at 101. 2022 Mar. 31 Sold the remaining Cygman shares for $38 per share. Apr 1 Received interest on the Rauk bonds. Oct. 1 Received interest on the Rauk bonds. Dec. 31 Rauk bonds were trading at 102. Record the above transactions, including any required adjusting entries, for 2021 and 2022. (Credit account titles are automatic Address P w X N

Answer 1

Journal Voucher		Amount in $
Date	Particular	Amount (Dr.)	Amount(Cr.)
2021
28-Sep	Shares held for trading A/c………………..Dr	102600
	To Bank A/c		102600
	(Being 2700 shares purchased @ of $38 per share)
01-Oct	Bonds held for trading A/c …………….Dr	228000
	To Bank A/c		228000
	(Being 4% Bonds purchased)
12-Nov	Bank A/c ………………………………………….Dr (1400*40)	56000
	To Shares held for trading (1400*38)		53200
	To P & L (Profit on Sale )    (40-38 )*1400		2800
	( Being share sold at a profit of $ 2)
01-Dec	Bank A/c …………………………dr	1950
	To P & L (Dividend on share) (2700-1400)*1.5		1950
	(Being Dividend received on share in hand)
31-Dec	P & L (Loss on revaluation of Share)( A/c……..Dr.	2600
	Shares held for trading
	(2700-1400)* (38-36)		2600
	(Being shares revalued at fair market value.)
31-Dec	Bonds held for trading………… Dr	2280
	To P & L (Gain on revaluation of Bond) A/c		2280
	(228000/100)*(101-100)
	(Being Bonds revalued at fair market value.Assumed Face value as $100)
2022
31-Mar	Bank A/c ………………………………………….Dr (1300*38)	49400
	To Shares held for trading (1400*38)		46800
	To P & L (Profit on Sale )    (36-38 )*1400		2600
	( Being share sold at a profit of $ 2)
01-Apr	Bank A/c ……………dr	4560
	To P/L ( Intrest on Bond)		4560
	=2280000*4%/2
	(Being Intrest received on bonds and transferred to P/L)
01-Oct	Bank A/c ……………dr	4560
	To P/L ( Intrest on Bond)		4560
	=2280000*4%/2
	(Being Intrest received on bonds and transferred to P/L)
31-Dec	Bonds held for trading………… Dr	2280
	To P & L (Gain on revaluation of Bond) A/c		2280
	(228000/100)*(102-101)
	(Being Bonds revalued at fair market value.Assumed Face value as $100)