Question
Sheffield Corporation has the following securities in its portfolio of investments that are held for trading...
Sheffield Corporation has the following securities in its
portfolio of investments that are held for trading on December 31,
2021, Sheffield's year end (all investments are included in one
account Investments at FVTPL):
| Investments | Carrying Amount (before adjustment) |
Fair Value | ||||
| 1,500 shares of David Jones Inc., common | $ 73,500 | $ | 65,980 | |||
| 5,000 shares of Heam Corp., common | 180,000 | 174,380 | ||||
| 400 shares of Alessandro Inc., preferred | 60,000 | 61,510 | ||||
| $313,500 | $301,870 | |||||
During 2022, Sheffield completed the following
transactions:
| Mar. 1 | Sold the 1,500 shares of David Jones Inc. common at $41.50 per share. | |
| Apr. 1 | Bought 700 shares of Oberto Ltd. common at $75.50 per share |
Sheffield Corporation's portfolio of held for trading investments
appeared as follows on December 31, 2022:
| Investments | Carrying Amount |
Fair Value | ||||
| 5,000 shares of Heam Corp., common | $ | 174,380 | $ | 175,000 | ||
| 700 shares of Oberto Ltd., common | 52,850 | 50,400 | ||||
| 400 shares of Alessandro Inc., preferred | 61,510 | 57,000 | ||||
| $288,740 | $282,400 | |||||
Prepare the Sheffield Corporation general journal entry for the December 31, 2021, adjusting entry.
Prepare the Sheffield Corporation general journal entry for the sale of the David Jones Inc. shares
Prepare the Sheffield Corporation general journal entry for the purchase of the Oberto Ltd. shares.
Prepare the Sheffield Corporation general journal entry for the December 31, 2022, adjusting entry.
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