For the following scenario, prepare journal entries, general ledgers, trial balance, income statement, and balance sheet for Abdul Razack Inc. for the period January 1 through February 28.
Box Position—Trade Currency BRL
Abdul Razack Inc. traded in Coca-Cola shares in a Brazilian stock exchange through Pompoodle brokers and the details are as follows.
Date Product Quantity Rate (BRL) B/S Brokerage
11-Jan-X1 Coco Cola 17,000 34.00 Bought Long BRL 12,500
25-Jan-X1 Coco Cola 14,000 39.00 Bought Long BRL 7,800
5-Feb-X1 Coco Cola 23,000 45.00 Short sales BRL 25,600
The stock loan fee paid by Abdul Razack Inc. on short sales on February 28 is BRL 4,800.
An investor has introduced an amount of BRL 10 million as share capital on January 1 into the Abdul Razack Inc. fund.
Settlement: T + 2
Abdul Razack Inc. makes a deposit of BRL 1.05 million with the broker on February 5 as collateral.
Interest accrued on cash collateral amounts to BRL 7,800 due from the broker as of February 28.
Date FX Rate
January 31: 42.00
February 28: 39.00