An entity owned 100% of another entity’s preference shares and 20% of ordinary shares. The investee’s share capital outstanding at year-end included P5,000,000 of 10% cumulative preference shares and P10,000,000 of ordinary shares. The investee reported net income of P8,000,000 for the current year. No dividend was declared for both preference and ordinary shares during the current year. What amount should be reported as investment income for the current year

Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…

A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…

Q: Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net…

A: Computation of the diluted EPS is as follows:

Q: ABC Company had the following capital structure during 2020 and 2021: Preference share capital, P10…

A: Answer) Calculation of Basic Earnings per Share Basic earnings per share = Earnings available for…

Q: On January 1, 2018, Lime acquired 80,000 common shares of Stone’s for $900,000. On that day,…

A: The question is related to Consolidated Financial Statements. The details are given.

Q: Young Corporation had 50,000 ordinary shares of P100 par value and 25,000 preference shares of P100…

A: Preferred stock carry the dividend and that is to be paid regularly and if not paid than they will…

Q: Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had…

A: The share means the smallest unit of the company's ownership. The shares are issued by the company…

Q: What amount should Eduardo report as total revenue related to its investment in Letecia Company for…

A: 1. Preference shares have first right to get Dividend.  After that            comes ordinary shares.…

Q: The entity received P7, 580,000 cash from the issuance of its 9%, 3-year P8, 000,000 par value…

A: Preference Share- Preferred stock (also called preferred shares, preference shares, or simply…

Q: Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's…

A: Dividend: A dividend is a payment made by a firm to its shareholders in exchange for its earnings.…

Q: Cliff Burton Co. holds 20,000 shares of Anesthesia, Inc. as investment in equity securities measured…

A: Property dividend is recorded at fair value. Stock dividend is also recorded at fair value.

Q: Andam Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and…

A: Dividend on Preference shares = Par Value of Preference Shares x Preference Dividend rate Dividend…

Q: A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s…

A: B total income = P55000 A’ s share = 70% x P55000 = P38500

Q: Gin Company had the following capital structure during the current year: Preference share capital,…

A: Earnings per share is known as the amount earned by each stockholder per share. It can be identified…

Q: Noemy Co. owns 15,000 of the 100,000 ordinary shares of Republic Corporation. The investment is…

A: Step 1 Journal is the part of book keeping.

Q: Chowking Company engaged in the following investment transactions during the current year:…

A: Incomes and expenses related to FVOCI securities do not form part of net income. They are directly…

Q: On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and…

A: As per IFRS 10 which specifies how consolidated financial statements to be prepared and presented.

Q: Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the…

A: The contributed capital includes the total capital value from the issuance of common stock and…

Q: The outstanding capital stock of Vaughn Corporation consists of 2,100 shares of $100 par value, 7%…

A: Working Note:

Q: Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On…

A: Stock: Stock is a share that describes the ownership of an individual in the corporation. These…

Q: Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net…

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: y share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared…

A: Chevy Co  owns 50% of another entity's Pref. Share Capital .  The Pref. Shares are 10%…

Q: After the combination, what is the total stockholders' equity of Parent Corporation? * A The…

A: Solution Given   Parent Subsidiary Capital stock 1500000 800000 Additional paid…

Q: which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary…

A:

Q: The outstanding capital stock of Shamrock Corporation consists of 2,200 shares of $100 par value, 7%…

A:

Q: Faye Co. owned 20% of Pen Inc.'s preference share capital and 50% of the ordinary share capital. Pen…

A: Non- cumulative percenatge of preference shares =Total Percentage of Preference Shares - cumulative…

Q: The following information is provided for Mario Company: Retained earnings, P350,000 Preference…

A: Total contributed capital =  Preference share capital + Premium on ordinary shares + Share Premium…

Q: Andam Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and…

A: Please find the answers to the above questions below:

Q: At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital…

A: Unrealized gain = Market price - Purchase price Cash amount received on sale = Number of shares *…

Q: The entity received P7,580,000 cash from the issuance of its 9%, 3-year P8,000,000 par value…

A: The shares on which the dividend is paid before equity shares and the ones preferred at the time of…

Q: meric Response Sample Corp. was organized on January 1, 2021, with authorized capital of 100,000…

A: The balance of RE is determined from the net income and dividend declared during the year. The…

Q: BC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…

A: Shareholders also invest money in the company and in return they become the owners in proportion to…

Q: The net income of Zia company for the year ended December 31, 2018 amounted to P5,600,000.…

A: The non cumulative preference dividend is not cumulated for any past year dividend undeclared.

Q: she Company was organized on January 1, 2015 with authorized share capital of 100,000 shares of P20…

A: In case issue of shares for acquisition of asset or for obtaining services then the fair value of…

Q: aye Co. owned 20% of Pen Inc.'s preference share capital and 50% of the ordinary share capital. Pen…

A: Step 1 If Cash Dividend is paid in spite of accrue dividend in case of preferred stock, then Cash…

Q: On December 31, Year 1, Penthouse Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: In case, investments are FV-OCI assets (Fair value through the Other Comprehensive Income), then…

Q: Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's…

A: Dividend: A dividend is a payment made by a firm to its shareholders in exchange for its earnings.…

Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of…

A: The shareholders' equity is calculated as sum of the issued and outstanding share capital, retained…

Q: Faye Co. owned 20% of Pen Inc.'s preference share capital and 50% of the ordinary share capital. Pen…

A: Preference share are issued by a company to raise fund. These shares carry the following two…

Q: At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During…

A: Retained earnings are surplus left after paying all operating Expenses, taxes and dividends. It is…

Q: At the beginning of the current year, Bella Company was organized and authorized to issue 100,000…

A: The shareholders' equity section displays all the capital, income or losses that belongs to…

Q: Aldous Corporation owned 50,000 ordinary shares held for trading. These 50,000 shares were purchased…

A: Rights issue : A rights issue is an offering of rights to the existing shareholders of a company…

Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…

A: Answer -   December 31, Year 2 ledger balance (30,000 x P65)                  P1,950,000 Cost…

Q: On January 1, 2021, Penn Company began operations bu issuing at P15 per share one-half of the…

A: Calculation of shareholders' equity: Year 2021   Issue of ordinary shares (475,000*15)…

Q: Jackie Inc. made the following capital transactions on a domestic share not listed in the exchange…

A: The answer is stated below:

Q: Roma Company provided the following shareholders’ equity at year-end:Preference share capital, P100…

A:

Q: What total amount shall be reported in profit or loss in the Inn Corporation had 30,000 ordinary…

A: Bonus issue =30000 x 20% = 6000 shares

Q: On December 31, Year 1 Penthouse Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: Long term investment means the amount invested in securities which are to be held for long period of…

Q: At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital…

A: Solution A journal is a company's official book in which all business transaction are recorded in…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.