Platinum Corporation Reported the Following Transactions Relating to Its Held

question 124

Essay

Platinum Corporation reported the following transactions relating to its held for trading investments. Platinum Corporation follows IFRS and has elected to report held for trading investments under the fair value through profit and loss model.Jan 1 Purchased 1,200 Silver Corporation shares for $20 cash each.Jun 1 Received cash dividends of $0.50 per share on Silver Corporation shares.Sep 15 Sold 600 shares of Silver Corporation for $13,800 ($23 each).Dec 1 Received cash dividends of $0.75 per share on Silver Corporation shares.Dec 31 Silver shares were trading at $27 each.Instructions
a. Record the above transactions and events.
b. Indicate where any revenues and gains or losses (realized or unrealized) would appear in the financial statements.

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Definitions:

Equilibrium Price

The cost at which the amount of products available for sale matches the amount of products consumers want to buy.

Clothing Market

The economic sector or industry that deals with the manufacture, distribution, and sale of clothing and apparel.

Blu-ray Players

Electronic devices designed to play Blu-ray discs, providing high-definition video and audio playback.

Law of Demand

A principle stating that, ceteris paribus, there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.