Question #3 (25 marks) During the year ended December 31, 2019, and in the following months...

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Fair value through profit or loss states that on the each balance sheet date, the assets and liability has to be measured at fair value. This would reflect the fair value where any movement between fair and book value is to be adjusted through income statement.

Date	Particulars	Debit ($)	Credit ($)
April 1	Investment in preferred shares- Starr	206,000
	Cash		206,000

July 1	Cash (200051/4)	2500
	Dividend revenue		2500

July 2,2019	Cash	57,500
	Realized gain on held for trading investments	6000
	Held for trading investments (206,000* 500/2000		51,500

Oct 1	Cash (150051/4)	1875
	Dividend revenue		1875

Dec 15	Dividend receivable	1875
	Dividend revenue		1875

Dec 31	Held for trading investments [1500*(116-103)	19,500
	Unrealized gain on held for trading investments		19,500

Jan 31,2020	Cash (700*92)	64,400
	Realized loss on held for trading investments	16800
	Held for trading investments (700*116)		81,200

Feb 15	Cash (500*118)	59,000
	Realized Gain on held for trading investments		1,000
	Held for trading investments (500*116)		58,000

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