On January 1, 2021, Eoeo Company acquired 16,000 shares of Fofo Corporation for P1,500,000. Commissions paid on the acquisition amounted to P15,000. Commission paid on the acquisition amounted to P15,000. On December 31, 2021, the market value per share of Fofo Company is P90. On December 31, 2022 the market value per share of Fofo's stock increases to P110. Required: Prepare all the necessary entries on 2021 and 2022 assuming the investments is 1. Financial Assets at Fair Value through Profit or Loss 2. Financial Assets at Fair Value through other Comprehensive Income

On January 1, 2021, Eoeo Company acquired 16,000 shares of Fofo Corporation for P1,500,000. Commissions paid on the acquisition amounted to P15,000. Commission paid on the acquisition amounted to P15,000. On December 31, 2021, the market value per share of Fofo Company is P90. On December 31, 2022 the market value per share of Fofo's stock increases to P110. Required: Prepare all the necessary entries on 2021 and 2022 assuming the investments is 1. Financial Assets at Fair Value through Profit or Loss 2. Financial Assets at Fair Value through other Comprehensive Income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Fill in the blanks: On January 1, 2020 Iskrambol Company purchased 20% of lce Buko Company's ordinary shares for P3,000,000.00. During 2020, Ice Buko reported a net income of P3,500,000.00 and paid a cash dividends of P2,000,000.00 on its ordinary shares. Compute a Investment Income for 2020 The balance of "Investment in associale" as of 12.31.2020 ( Previous 23 f
On January 1, 2020, HND Industrial Products Company acquired 400,000 shares at $ 50 per share of XYZ Cables Company, which represents 20% ownership. Required Record the following transactions in the books of HND Industrial Products Company. (assuming there is significant influence and insignificant influence) (a) Record the acquisition entry done by HND Company on January 1, 2020 (b) The XYZ Cables had reported net income of $ 800,000 for the year 2020 (c) XYZ cables announced and paid cash dividends of $ 200,000, (d) On December 31, 2020, XYZ Cables shares have been valued at $ 52 per share, and HND still owns 400,000 shares On December 31, 2021, XYZ Cables shares would be valued at $ 51 per share, and HND Company will own 400,000 shares
Need help. Accounting
1. On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur Corporation stocks at P48 per share, including P3 per share broker's fees and commissions. Arthur Corp. declared and paid P5 dividends per share to shareholders on December 20, 2021 and reported a net income of P2,240,000 for 2021 (earned evenly throughout the year). What is the balance of the investment in Arthur Corp. on December 31, 2021?
Please help me
Sunland Company owns 17200 of the 43000 outstanding shares of Carla Vista, Inc. common stock. During 2025, Carla Vista earns $1080000 and pays cash dividends of $870000. If the beginning balance in the investment account was $690000, the balance at December 31, 2025 is O $690000. O $1122000. O $774000. O $900000.
Do not give solution in image
ALOY Company acquires 100% of the voting stock of BENNET Company on January 1, 2021 for P400,000 cash. A contingent payment of P16,500 will be paid on April 15, 2022 if BENNET Company generates cash flows from operations of P27,000 or more next year. ALOY Company estimates that there is a 20% probability that BENNET Company will generate at least P27,000 next year and uses an interest rate of 5% to incorporate the time value of money. The fair value of P16,500 at 5%, using a probability weighted approach is P3,142. What will ALOY Company record as the acquisition price on January 1, 2021?
On January 1, 2021, the Swiss Company purchased 20,000 ordinary shares at P100 per share to be classified as nontrading through other comprehensive income. On September 30, 2021, the entity received 6,000 shares rights to purchase one (1) new share at a cost per share of P60 for every three (3) share rights. The share rights had an expiration date of February 1, 2022. On September 30, 2021, each share had a market value of P150 and the share rights had a market value of P20. How much is the cost/purchase price of the new shares that are acquired by exercising all the rights on September 30, 2021?
On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea Company at P165 per share. Milk Tea Company had 200,000 ordinary shares outstanding at the time of purchase. Matcha received cash dividend from Less of P210,000 on August 1, 2019 and P240,000 on December 31, 2020. Milk Tea Company reported profit of P680,000 in 2019 and P1,000,000 in year 2020. Market values of each share on December 31, 2019 and December 31, 2020 were P160 and P175, respectively. On January 2, 2021, Matcha Company sold 20,000 shares of its equity investment at Milk Tea Company for P175 per share. Because of the decrease in ownership shares in Milk Tea Company, Matcha exercised its option to measure the remaining securities at fair value through other comprehensive income on January 2, 2021. For year 2021, Milk Tea Company reported profit of P3,720,000 and paid Matcha company, dividends of P120,000. Market value of Milk Tea Company shares on December 31, 2021 was P180 per…
On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open maket in eiciarche for $16,000. On December 31,2020 , Akron, Inc., acquires an additional 25 percent of Zip Companys outstanding commen stociter $95,000. During the next two years, the following information is available for Zip Company. \table[[,Income,\table[[Dividends],[Declared]],\table[[Common Stock],[Fair Value],[(1231)
Compute for the NCI on June 30, 2023.