The Company bought 100,000 DBS shares on 18t May 2010 at $20.00 per share. On 18t June 2010, it sold 20,000 DBS share at $23.00 per share. The last transacted price of DBS share on 31.12.10 was $19.00. Please journalise the transaction (including Provision for Diminution Account on 31.12.2010)

The Company bought 100,000 DBS shares on 18t May 2010 at $20.00 per share. On 18t June 2010, it sold 20,000 DBS share at $23.00 per share. The last transacted price of DBS share on 31.12.10 was $19.00. Please journalise the transaction (including Provision for Diminution Account on 31.12.2010)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Question

4. The Company bought 100,000 DBS shares on 18" May 2010 at $20.00 per share. On 18t
June 2010, it sold 20,000 DBS share at $23.00 per share. The last transacted price of
DBS share on 31.12.10 was $19.00. Please journalise the transaction (including
Provision for Diminution Account on 31.12.2010)

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