Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Stockholders equity trail balance (https://www.askmehelpdesk.com/showthread.php?t=91474)

  • May 11, 2007, 04:22 AM
    nera
    Stockholders equity trail balance
    I was given 250,000 dollars to invest for 10 weeks. No brokers fees and no overhead. I had a balance of 3.04 after investing the rest. I made 301,124.000 dollars after selling my investment. How do I present this in a trail balance for my teacher?
  • May 11, 2007, 01:41 PM
    CaptainForest
    So your “company” had 250,000 in cash.

    You then invested $204, 996.96 (so let's just say you invested $250,000).

    That JE would have been:
    Dr. Investments 250,000
    Cr. Cash 250,000

    Now you have sold the investments for let's say $300,000.

    So that JE is:
    Dr. Cash 300,000
    Cr. Investments 250,000
    Cr. Gain on Investments 50,000 (a revenue account, goes on the Income Statement)

  • All times are GMT -7. The time now is 01:45 AM.