Question

a- The company purchased1, 1000 of the Ada A.Ş. shares at a price of $1,5 / share on July 2019 by the bank. The bank deducted 1% purchase commission and purchase price from the business's commercial deposit account.

b- On 15 July 2019 the company sold 200 of the shares of Ada A.Ş. at a price of $1.4 / share through the bank and the Money is deposited into the company’s bank account after the 1% sale commission cut.

c- On 27 July 2019 the company sold 200 of the shares of Ada A.Ş. at a price of $1.7 / share by the bank and the and the amount is deposited to the company’s bank account after the 1% sale commission cut.

d- The value of Ada A.Ş. shares was realized as $1.45 on 31 December 2019. Show the period-end valuation.

-All the details of the problem are interconnected and journal entries related to the event described in each case are requested.

Answer 1

The journla entries of the company are as follows

Date	Journal Entries	Debit	Credit
Jul-19	Investment in Ada A.S Shares A/c (1,000 * $1.5)	$1,500
	Purchase Commission A/c	$15
	Cash A/c		$1,515
	[To record investment made in Ada A.S. shares]
15-Jul-19	Cash A/c [200*$1.4 - (200*$1.4*1%)]	$252
	Sales Commission A/c (200*$1.4*1%)	$28
	Loss on sale of Investment A/c (200*$0.1)	$20
	Investment in Ada A.S Shares A/c (200 * $1.5)		$300
	[To record sale and loss on sale of investment on 200 shares]
27-Jul-19	Cash A/c [200*$1.7 - (200*$1.7*1%)]	$306
	Sales Commission A/c (200*$1.7*1%)	$34
	Profit on sale of Investment A/c (200 8 $0.2)		$40
	Investment in Ada A.S Shares A/c (200 * $1.5)		$300
	[To record sale and profit on sale of investment on 200 shares]
31-Dec-19	Unrealized gain/loss on investments A/c	$30
	Investment in Ada A.S Shares A/c (600 * $0.05)		$30
	[To record shares at fair market value]