Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a share dividend of 2,000 on September 1, 2020, when the carrying value per on XYZ Corporation's books was P30 per share, and the market price is P33 per share. XYZ Corporation paid a cash dividend of P10 per share on October 31, 2020, declared on September 30, 2020, of record October 15, 2020.   Requirement: 1. How much is the dividend income at the end of 2020?

Q: On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of…

A: Solution: Purchase cost of shares = 15000*P25 + P15,000 = P390,000 Sale value of shares = 5000*P30 =…

Q: On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s…

A: On 15.06.2021, LABAN company owns shares of GANGDULO company = 20000 shares Cost of purchase =…

Q: On December 31, 2020, Lea Company, an entity with no subsidiary, purchased 10,000 ordinary shares of…

A: Total outstanding shares of Sun Valley = Total outstanding shares before purchase of shares by Lea…

Q: Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a…

A: Journal is the process of recording accounting transaction of an organisation.

Q: Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December…

A: Journal entryThe transactions that a company goes through in its day-to-day activities are recorded…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: On January 1, 2021, KIND Company acquired 5,000 shares of FVOCI securities of OVERFLOW Company at…

A: There are three methods to recognize a financial asset as per IFRS 9. Fair value through profit…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

A: a) calculation of dividend income - SIKAP owns 10000 FVOCI shares which represent 10% of the total…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: Heidebrecht Design acquired 25% of the outstanding common stock of Sunland Company on January 1,…

A: Common Stock -A share of ownership in a firm that is designated as common stock may be associated…

Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ…

A: Solution: As shares are expected to be sold with in a year, therefore investment should be…

Q: On January 1, 2021, Eoeo Company acquired 16,000 shares of Fofo Corporation for P1,500,000.…

A: When the company intents to keep the investment for a short period and has the intension to sell the…

Q: Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: ABC Co. purchased 10,000 shares (2% ownership) of DEF Co. on February 14, 2020. ABC Co. received a…

A: number of shares on hand as on the date of cash dividend -    shares purchased on 14Feb2020 = 10000…

Q: n January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of llagan…

A: Solution: Cost of investment = 10000*P70 = P700,000 Sale value of investment = 10000*P100 =…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The…

A: Unrealized gain or loss represents the change in the market value of the investment. For equity…

Q: On January 1, 2023, EE Company acquired 70,000 shares, representing 20% of the outstanding shares of…

A: The objective of the question is to determine how EE Company should report its investment in WW…

Q: Potsaid Company acquired 30% of the outstanding common stock of Buyuk Inc. on December 31, 2025. The…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: How much is the unrealized gain(loss) that should be presented in the statement of comprehensive…

A: The PINK Company purchased 50,000 shares (5% ownership) of another Company on January 2, 2020. PINK…

Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…

A: In case of a company the shareholders are the owners of the company.

Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

Q: What amount of unrealized gain should Sisig Corp. report in its December 31, 2020 Statement of…

A: Unrealized gain is the gain which has been earned by the company when the investment is measured at…

Q: PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per…

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: Gangnamn Inc owns 50% of Ps

A: An income statement is one of the financial statements which have to be prepared by the company at…

Q: BOY Co. acquired 50,000 ordinary shares of GIRL Co. on September 30, 2019 for P8,250,000. On October…

A: 1. Details of GIRLS Co. shares held by BOYS Co. before and after the share split. Date Cost of…

Q: On January 5, 2020, Swat Company declared a 15% share dividend. The market price of the entity’s…

A: Share dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that…

A: In accordance with IAS 28 "If an entity holds 20% or more of the voting power (directly or through…

Q: What amount should Billy record as share in income of JoeI for the year ended December 31, 2020?

A: Company gets the control over to another company by way of purchasing the shares of another company…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020…

A: When one company purchases the shares of another company then the profit and loss earned by the…

Q: in A net identifiable assets. XYZ's assets and liabilities on January 1, 2021 approximate their fair…

A: Solution- To calculate the goodwill the fair value of asset and liabilities of the acquired business…

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.