22. During 2022, Haggard Company purchased marketable equity securities for P 1,850,000 to be held as trading investments. In 2022, the entity appropriately reported an unrealized loss of P 200,000 in the income statement. There was no change during 2022 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2023 are: Security Cost Market value Inc (Dec) A 600,000 700,000 100,000 B 450,000 400,000 (50,000) C 800,000 900,000 100,000 Net Increase 150,000 What amount of unrealized gain on these securities should be included in the 2021 income statement?

22. During 2022, Haggard Company purchased marketable equity securities for P 1,850,000 to be held as trading investments. In 2022, the entity appropriately reported an unrealized loss of P 200,000 in the income statement. There was no change during 2022 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2023 are: Security Cost Market value Inc (Dec) A 600,000 700,000 100,000 B 450,000 400,000 (50,000) C 800,000 900,000 100,000 Net Increase 150,000 What amount of unrealized gain on these securities should be included in the 2021 income statement?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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1 During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as trading investments. In 2020, the entity appropriately reported an unrealized loss of 200,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2021 are: Security Cost Market A 600,000 700,000 B 450,000 400,000 C 800,000 900,000o What amount of unrealized gain on these securities should be included in the 2021 income statement? a. 350,000 b. 150,000 c. 550,000 d. 0
2. Edwards Company began business in February of 2021. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2021, balance sheet, Edwards appropriately reported a P4,000 credit balance in its Market Adjustment-Trading securities account. There was no change during 2022 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows: Security A B с Cost P120,000 90,000 160,000 P370,000 Fair Value 12/31/22 P126,000 80,000 157,000 P363,000 What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2022? d. P0| a. P11,000 b. P7,000 c. P3,000
On its December 31, 2024 balance sheet, Sandhill Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2025 in the composition of Sandhill's portfolio of debt investments held as available- for-sale debt securities. The following information pertains to that portfolio: Security X Y Z Cost $154000 116000 O $24000 O $0 O $14000 O $28000 199000 $469000 Fair value at 12/31/25 $200000 98000 157000 $455000 What amount of unrealized loss on these debt securities should be included in Sandhill's stockholders' equity section of the balance sheet at December 31, 2025?
On its December 31, 2024 balance sheet, Calhoun Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2025 in the composition of Calhoun's portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio: Security XY N B) $0. OC) $40,000. Cost $130,000 OD) $30,000. 100,000 175,000 $405,000 The amount of unrealized loss reported as a component of comprehensive income for the year ending December 31, 2025 is OA) $20,000. Fair value at 12/31/25 $160,000 90,000 125,000 $375,000
Can you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,000
2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
Problem 5: Color Company began business in January of 2021. During the year, Color purchased a portfolio of securities listed below. In its December 31, 2021 balance sheet, Color appropriately reported a P300,000 debit balance in its "Unrealized gain/loss" account. The composition of the securities did not change during the year 2022. Pertinent data are as follows: Security BE (FVPL) BI (FVOCI) KO (FVOCI) Cost P2,000,000 3,600,000 3,900,000 P9,500,000 Market Value, December 31, 2022 P2,750,000 3,250,000 4,000,000 P10,000,000 5.1 How much is the carrying value of Investment on December 31, 2021? 5.2 How much is the unrealized gain or loss that should presented in the Equity section of the Balance Sheet on December 31, 2022?
Prepare adjusting entry to record fair value, and indicate statement presentation. E16.11 (LO 3), AP Financial Statement Writing At December 31, 2022, available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Fair Value $16,000 14,000 21,000 $51,000 Security A B с Cost $17,500 12,500 23,000 $53,000 Instructions a. Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. b. Show the statement presentation at December 31, 2022, after adjustment to fair value. c. E. Kretsinger, a member of the board of directors, does not understand the reporting of the unreal- ized gains or losses. Write a letter to Ms. Kretsinger explaining the reporting and the purposes that it serves.
On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows:Securities Cost MarketC PI,500,000 PI,625,000P 1,250,000 1,300,000A 2,250,000 2,350,000Total P5,000,000 P5,275,000What amount of unrealized gain or loss on these securities should the company report in its 2020 statement of comprehensive income, ignore income tax effect? a. none b. 375,000 c. 400,000 d. 625,000
ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022. Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20. Requirements: Determine the net cash provided by: a) Operating activities b)…
On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows:Securities Cost MarketC PI,500,000 PI,625,000P 1,250,000 1,300,000A 2,250,000 2,350,000Total P5,000,000 P5,275,000 What amount of unrealized gain on these securities should the company report in its 2020 shareholders' equity? a. none b. 275,000 c. 400,000 d. 625,000
Cost and fair value data for the trading debt securities of Ivanhoe Company at December 31, 2022, are $64,220 and $63,810, respectively. (a1) Show the financial statement presentation of the trading securities. Ivanhoe Company (Partial) Balance Sheet A