Proble Aborigine Company reported the fo- statement of financial position on J= Noncurrent assets Financial asset – FVOCI Market adjustment for unrealized loss Market value ther comprehensive income Unrealized loss An analysis of the investment p ollowing on December 31, 2020. YZ ordinary share BC ordinary share EST preference share On July 1, 2021, the ABC ordinar "2,100,000. On December 31, 2021, the remaining bllowing market value: YZ ordinary share ST preference share Cequired:
Q: (b) On December 31, 2018, Ramey Associates owned the following Sccurities, held as a long term…
A: We have the following information: On December 31, 2010, the total fair value of the securities…
Q: How much should Jaybo Company report as unrealized gain or loss related to the securities in its…
A: Unrealized gain or loss is the unrealized either gain or loss which has been calculated when the…
Q: Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of…
A: Market value of security 2 as on Dec. 31, 2022 1100000 Less: value at which security 2sold…
Q: Sandhill Company's equity securities portfolio which is appropriately included in current assets is…
A: Since the given securities are trading securities hence any unrealized gain or loss in respect of…
Q: On December 21, 2020, Martinez Company provided you with the following information regarding its…
A: Investment Cost Fair Value on Dec. 31, 2021 Unrealized Gain (Loss) Clemson Corp. Stock…
Q: Gondola Company showed the following charges and credits to retained earnings for 2019: Balance –…
A: The statement of retained earnings is the one that is prepared as a part of the financial statement…
Q: On December 21, 2020, Pearl Company provided you with the following information regarding its equity…
A: Investment is described as the amount which is invested or expended to generate income or profits…
Q: Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the…
A: Step 1 Journal is the part of the book keeping.
Q: aybo Company purchased the following portfolio of equity instrument designated as fair value through…
A: Company report as unrealized gain or loss related to the securities in its 2022 statement of…
Q: Company acquired equity securities during the year 2018 and designated as fair value to other…
A: Investment in shares is the investment which is done by the investor to get gain by the increase in…
Q: The following investment portfolio of equity securities (all acquired during 2019) accounted for as…
A: Here discuss about the unrealized gain or loss arised from the equity securities which are traded in…
Q: 1. Arizona Company acquired a financial asset not held for trading during the last quarter of the…
A: A) First to Calculate the Stock Value Stock Value = Number of Shares * Cost per Share JFC Stock…
Q: On January 1,2021 Hubalde Company purchased training equity investments which are irrevocably…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Paul Company presented the following information pertaining to its investments in equity securities.…
A: Investment in equity securities can be designated in either way: 1. FVPL 2. FVOCI
Q: Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December…
A: Date Account Titles and Explanation Debit Credit Jan 15, 2021 Investment in CTN Corp. $1,850…
Q: An entity reported the following information for the current year Income…
A: Comprehensive income is the variation in a company’s net asset from other sources during a specific…
Q: Abednego Company purchased equity investments held for trading on January 1, 2020. Market –…
A: In case of equity investments held for trading , they should be reported at market value as at year…
Q: Presented below is information related to the purchases of common stock by Indigo Company during…
A: Answer Journal entries Date Particulars Debit($) Credit($) 31-Dec-20…
Q: For the year ended December 31, 2019, WQA company reported opening retained earnings of P1,850,000…
A: The reserve balance at December 31. 2020 = P35, 000
Q: Oak Ridge Corporation, which reports under IFRS, has the following investments at December 31, 2021:…
A: Balance sheet is the financial statement of a company. It helps in maintaining the records of…
Q: During 2021, Manu Company purchased shares of stock classified as short-term investment to be…
A: Unrealized gain or loss is the increase or decrease in the value of an asset that is still to be…
Q: For the year ended December 31, 2019, WQA Company reported opening retained earnings of P1,850,000…
A: Calculation of reserve balance at December 31 2021: Unrealized gain from half old…
Q: Inspiration Company had trading and non-trading investment held throughout 2020 and 2021 The non-…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: For the year ended December 31, 2019, WQA Company reported opening retained earnings of P1,850,000…
A: Solution The Reserve balance is calculated by the addition of unrealized gain from half old…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Unrealized Gain: It is a potential gain which is earned from the investment when the company earns…
Q: What effect will this error have on Aponte's 2020 Net Income? Select one: a. Will be underestimated…
A:
Q: In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably…
A: Unrealized loss is the loss for the asset or investment which is computed by deducting the cost…
Q: Asian bank acquired the following portfolio equity securities to other comprehensive income during…
A: Available for Sale Security: These are held-for-trading securities that is being purchased and…
Q: Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31,…
A: The fair value (FV) method for recording the investment-related transaction made the corporation…
Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…
A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees
Q: On December 31, 2019, Belle Company appropriately reported a P100,000 unrealized loss. There was no…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: On January 1, 2017, Angelic Company acquired as a long term investment for P7,000,000 a 40% interest…
A: When a company holds more than 20% but less than 50% of the voting stock of another company, the…
Q: Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence…
A: Solution: When acquistion did not result into significant influence over investee company,…
Q: Jaybo Company purchased the following portfolio of equity instrument designated as fair value…
A: Unrealised gains or losses are those gains or losses, which are not realised yet. These are only…
Q: Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Culver Company has the following securities in its portfolio on December 31, 2020. None of these…
A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…
Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?
A: The direct acquisition costs incurred is considered as part of purchase value of equity instrument.…
Q: Presented below is information related to the purchases of common stock by Cheyenne Company during…
A: An entity has two options to measure its investment. Cost Method. Equity method.
Q: On December 21, 2020, Zurich Company provided you with the following information regarding its…
A: Compute the value of unrealized holding gain or loss:
Q: On December 21, 2020, Grouper Company provided you with the following information regarding its…
A: Grouper Company Journal Entries Particulars Amount (Dr)($) Amount(Cr)($) a. Unrealized…
Q: he entity sold 10,000 shares of B on January 5, 2022 for P150 per share. The market price per share…
A: In this case stock valued at the end of each year at the fair value and the difference is transfer…
Q: In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably…
A: Unrealised gains and losses are the differences of fair values of investments with cost value of…
Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?
A: The gain to be recognized in the financial statements is based on purchase value of investment and…
Q: For the year ended December 31, 2019, WQA Company reported opening retained earnings of P1,850,000…
A:
Q: Splendid Company purchased equity securties during 2020 to be heid as investmenta. The cost and…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Myrnam Co. has the following investments held for trading on December 31, 2021: Security Co. M…
A: a. Journal entry Unrealized loss 65000 To M common shares 25000 To P common shares…
Q: The following investment portfolio of equity securities (all acquired during 2021) accounted for as…
A: You have posted multiple part question, so as per policy of Bartleby only first three parts will be…
Q: On December 21, 2020, Sweet Company provided you with the following information regarding its equity…
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: income statement
A: Investments in Equity shall be classified as Fair Value always. The question may arise as to whether…
Q: On December 21, 2020, Bucky Katt Company provided you with the following information regarding its…
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Step by step
Solved in 3 steps
- JOURNAL ENTRIES FOR CULVER COMPANY (a) Adjusting entries for 2020 (in$) 31/12/2020 Revenue Account Dr. 9800 To Provision for depreciation Account 9800 (Being market value of Gordon inc. and Wallace corporat. depreciated ) 31/12/2020 Investment in Martin inc. a/c Dr. 1800 To Unrealised Appreciation Reserve a/c 1800 (Being market value of Martin inc.appreciated) (b) sale of Gordon stock journal entry 1/03/2021 Bank a/c Dr. 66300 Loss on disposal of investment alc Dr. 1400 To Investment in Gordon inc a/c…Topic: Non-Current Assets Held for Sale and Discontinued Operations 15. Which of the following shall be recognized by the entity in its 20x3 financial statements? Held for ale asset Impairment loss a. P1,100,000 P450,000 b. P1,000,000 P350,000 c. P750,000 P250,000 d. P0 P350,000 16. Requirement: Provide the journal entry on December 31, 20x3.An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
- An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale isAn entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isAsset turnover ratioFinancial statement data for years ended December 31, 20Y3 and 20Y2, for EdisonCompany follow:a. Determine the asset turnover ratio for 20Y3 and 20Y2.b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable orunfavorable?
- a. calculate the purchase consideration b. calculate the goodwill or bargain purchase for this transaction c. Prepare the journal entries in the books of Chelsea Limited relating to this transaction Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. DETAILS PPE Inventory Long Term Loans Account Payable CARRYING AMOUNT FAIR VALUE 10,000,000 14,000,000 4,200,000 4,400,000 (3,500,000) (3,500,000) (2,500,000) (2,500,000) 8,200,000 12,400,000 3.1. The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition.Problem 1: Joan Company provided the following data for 2019: Value of biological asset at acquisition cost on January 1, 2019 600,000 Fair valuation surplus on initial recognition at fair value on January 1, 2019 700,000 Change in fair value to December 31, 2019 due to growth and price fluctuation 100,000 Decrease in fair value due to harvest 90,000 Decrease due to sale of biological asset 400,000 Required: Prepare all indicated entries for 2019 necessary to record the transactions relating to the biological asset. Determine the carrying amount of the biological asset on December 31, 2019. Problem 2: Honey Company has a herd of 10 2-year old animals on January 1, 2019. One animal aged 2.5 years was purchased on July 1, 2019 for P108, and one animal was born on July 1, 2019. No animals were sold or disposed during the year. The active market provided the following fair value less cost to sell: 2 – year old animal on January 1 100 2.5 – year old…The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company classified a non-current asset as held for sale in accordance with PFRS 5. At that date, the asset's carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on Oct 18, 2021 for P31,200. Q-27. 12.How much is the impairment loss and at what amount should the asset be stated in ABC Company's statement of financial position at September 30, 2021? 13.How much is the gain on sale to be reported in the September 30, 2021 statement of income?
- Required: Compute for the following: Gain or loss on sale of Asset P Total depreciation expense for 2021 Adjusted cost of PPE as of Dec. 31, 2021 Carrying amount of PPE as of Dec. 31, 2021Background: On December 31, 2021, Company A purchased acquired various assets from Company B as follows:and assumed liabilities does not meet the definition of a business under ASC 805.UmbrellaTableLemon squeezerThe books and records of Company B value these assets at December 31, 2021 as followsUmbrella $100Table $50Lemon squeezer $150Company B determined the fair value for these assets on January 1, 2022 to be as follows:Umbrella $80Table $20Lemon squeezer $100On December 31, 2021, Company A paid $350 for these assets. Question How should the acquired asset be valued and reflected on Company A's books on January 1, 2022? US GAAP standards used: ASC_____,EY FRD Business Combinations, p. Methodology applied: Calculation: Findings: Conclusion:An entity classified a noncurrent asset accounted for under the costmodel as held for sale at the current year-end. The entity decided at theend of the following year not to sell the asset but to continue to use it. Theasset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amountB. The higher of carrying amount and recoverable amountC. The lower of carrying amount on the basis that it had never been classified as held forsale and recoverable amountD. The recoverable amount