Many thanks! Duggar Consulting invests its temporary excess cash in a brokerage

Question

Many thanks!

Duggar Consulting invests its temporary excess cash in a brokerage account. On November 3, 2017, Duggar purchased 800 shares of Go Data Co. common stock for $5 per share. On December 31, 2017, Go Data's common stock was trading at $4 per share. Assume Duggar records the stock as a trading investment. Requirements 1. Journalize the acquisition of Go Data stock on November 3,2017. 2. Journalize any entries, if required, at December 31, 2017. 3. On January 25, 2018, Duggar sold the Go Data stock for $6.30 per share. Journalize the sale

Explanation / Answer

Workings:

Date Account Debit Credit Nov 3. 2017 Investment in go data co common stock 4000 Bank 4000 [Trading securities purchased] Dec.31 2017 Unrealised holding gain/loss on trading securities 800 Investment in go data co common stock 800 [Year end fair value adjustment] Jan 25.2018 Bank 5040 Investment in go data co common stock 3200 Realised gain/loss on disposal of trading securities 1840 [Trading securities disposed]

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