REQUIRED: d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.
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REQUIRED:
d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare the
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- At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, itsfirst year of operations:Cost Fair ValueTrading Securities:Security A $ 900,000 $ 910,000Security B 105,000 100,000Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale:Security C $ 700,000 $ 780,000Security D 900,000 915,000Totals $ 1,600,000 $ 1,695,000Securities to Be Held-to-Maturity:Security E $ 490,000 $ 500,000Security F 615,000 610,000Totals $ 1,105,000 $ 1,110,000No investments were sold during 2018. All securities except Security D and Security F are considered shortterminvestments. None of the fair value changes is considered permanent.Required:Determine the following amounts at December 31, 2018.1. Investments reported as current assets2. Investments reported as noncurrent assets3. Unrealized gain (or loss) component of income before taxes4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equityAt December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its first year of operation: Trading Securities: Security A B Totals FAFV Thru OCI: Security Y Z Totals Cost P 90,000 15,000 P105.000 P 70,000 85,000 P155.000 Fair Value P 60,000 20,000 P 80.000 P 80,000 55,000 P135.000 Unrealized Gain (Loss) P(30,000) 5,000 P(25.000) P 10,000 (30,000) P(20.000) All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022 should be charged against income? equity? Present your solution.On January 1, 2020, Erika Company purchased equity investments held for trading.Purchase Price Market 12/31/20Security A 1,000,000 1,200,000Security B 2,000,000 1,500,000Securty C 3,000,000 3,100,000On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain onsale for trading securities in the 2021 Income Statement?
- Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 400,000 400,000 500,000 1,300,000 260,000 400,000 P Company R Company T Company Total 500,000 260,000 700,000 1,460,000 600,000 1,260,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company | Company Total 4,100,000 1,000,000 ´ 5,100,000 3,600,000 1,200,000 4,800,000 3,600,000 1,400,000 5,000,000 The net amount to be recognized in 2020 comprehensive income isPompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019.Trading Securities: Cost Fair Value 12/31/19 12/31/20 P Company 500,000 260,000 400,000 R Company 260,000 400,000 400,000 T Company 700,000 600,000 500,000 Total 1,460,000 1,260,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company 4,100,000 3,600,000 3,600,000 I Company 1,000,000 1,200,000 1,400,000 Total 5,100,000 4,800,000 5,000,000 The net amount to be recognized in 2020 comprehensive income isPompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 400,000 P Company 500,000 260,000 400,000 R Company T Company Total 260,000 400,000 700,000 600,000 500,000 1,460,000 1,260,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company I Company Total 4,100,000 3,600,000 3,600,000 1,000,000 1,200,000 1,400,000 5,100,000 4,800,000 5,000,000 The net amount to be recognized in 2020 comprehensive income is P260,000 loss P240,000 gain P200,000 gain P 60,000 loss The net amount to be recognized in 2020 comprehensive income is P100,000 loss P40,000 gain P200,000 gain P260,000 loss
- On January 1, 2020 Excellence Company made various investments in trading securities with the following cost and market value on December 31, 2020: Cost 200,000 800,000 1,000,000 Market value One preference share Two ordinary share Three ordinary share 150,000 950,000 1,100,000 On January 20, 2021, the Two ordinary share is sold for P1,020,000. On December 31, 2021, the remaining trading securities have the following Market value: Market value One preference share Three ordinary share 200,000 1,070,000 Required: a.) Gain on sale on January 20, 2021 b.) Unrealized gain or loss be reported to the Income Statement for the Year- ended December 31, 2021Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 P Company R Company T Company Total 500,000 260,000 700,000 1,460,000 260,000 400,000 600,000 1,260,000 400,000| 400,000 500,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 3,600,000 C Company | Company Total 4,100,000 1,000,000 5,100,000 1,200,000 4,800,000 3,600,000 1,400,000 5,000,000 The net unrealized gain/loss at December 31, 2020 in accumulated other comprehensive income in shareholders' equity is O P100.000 loss OP 40.000 gain P260,000 loss O P200,000 gainSplendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are Cost Market December 31, 2000 Trading securities 2.000.000 2.500.000 Securities not held for trading 3.000.000 2.500,000 December 31, 2021 Trading securities 2.000.000 2.200,000 Securities not held for trading 3,000.000 2.300,000 The securities not held for trading are measured at fair value through other comprehensive income by irevocable election. Requirement Complete the table below. Wrte zero (0) it is not applicable. December 31, 2019 December 31, 2020 December 31. 2021 Statement of Financial Position Investments - FVPL Investments - FVOCI Statement of Changes in Equity Cther Comprehensive Income Retained earnings Statement of Comprehensive Income Net income - Unrealized gainloss) Net income Realized gainloss) Cther Comprehensive income- Unrealized gainloss)
- Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 creditSplendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the Problem 15-3 (IAA) investments are: Probl Aborig statem December 31, 2020 Cost Trading securities Securities not held for trading Market 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Noncu Trading securities Securities not held for trading Financ Marke 2,000,000 3,000,000 2,200,000 Marke 2,300,000 The securities not held for trading are measured at fair valun through other comprehensive income by irrevocable election Other Unres Required: An & follow Prepare journal entries for 2020 and 2021.During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 loss