Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events:
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Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events:
As of Jan. 1, 2021, the fair value of the inventory of X was P100,000 higher than its carrying value. All of the inventory were sold as of the end of the year.
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- Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,600 on each September 30, beginning on September 30, 2024. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required:Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 10% properly reflects the time value of money in this situation. Amount recordedLincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,600 on each September 30, beginning on September 30, 2024. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required:Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 10% properly reflects the time value of money in this situation.On December 12, 2021, an equity investment costing $99,000 was sold for $138,000. The investment was carried in the balance sheet at $94,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required:1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Lincoln Company purchased merchandise from Grandville Corp, on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $5,200 on each September 30, beginning on September 30, 2024 (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 11% properly reflects the time value of money in this situation Amount recordedOn October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a total of P1,977,800 and classified this as investment at fair value through profit or loss. The effective rate for this type of investment is 12%. The debt instrument pays interest semi-annually on June 1 and December 1. On December 31, 2021, the fair market value of the instruments is 97. How much is the total amount reported in Neon Company’s profit or loss in 2021?
- An entity purchased 4-year debt instruments with a face value of P10,000,000 on January 1, 2019 to collect contractual cash flows that are solely payments of principal and interest. Interest is paid annually at a nominal rate of 10% that is paid every December 31. The following information is provided as follows: Date Effective Rate without Transaction Cost Effective Rate with Transaction Cost 01/01/2019 12% 13% 12/31/2019 14% 14.50% 12/31/2020 11% 11.50% 12/31/2021 9% 9.50% 12/31/2022 10.5% 11% Requirements: What is the initial carrying amount of the bond investment? What is the 2020 interest income? What is the December 31, 2020 carrying amount? If the entity changes its business model in 2020 to both collect contractual cash flows and to sell the financial asset, what is the unrealized gain or loss in equity on December 31, 2021? If the entity changes its business model in 2020 to both collect contractual cash flows and to sell the financial asset, what is the…On January 1, 2022, Malia sold property carried in inventory at a cost of P1,312,710 for P2,100,000. A 20% down payment was made and the balance payable in 4 equal installments of P420,000, payable semi-annually every June 30 and December 31. Expenses related with sale, P100,000. (Market rate of interest-12%). How much is the net income related with the installment sales for the year ended December 31, 2022?On January 1, 2021 ccCacquired all of the identifiable assets and assumed all liabilities of DDD by paying P4,800,000. On this date, identifiable assets and liabilities assumed have fair value of P7,680,000 and P4,320,000, respectively. Terms of agreement are as follows: > 20% of the price shall be paid on January 1, 2021 and the balance on December 31, 2022 (the prevailing market rate on the same date 10%) > The acquirer shall also transfer its piece of land with book value and fair value of P2,400,000 and P1,440,000, respectively. Included in the liabilities assumed is an estimated warranty liability. The carrying amount and fair value of this warranty liability amounted to P576,000 and P468,000, respectively. The acquiree guarantees that the warranty liability would only be settled for P480,000. How much is the goodwill on the business combination?
- On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities qualify as a financial asset held for trading. The entity also paid P50,000 as commission to the broker. At year-end, the trading securities have a fair value of P6,000,000. The increase in fair value should be recorded with: a.A credit to Financial asset - FVPL, P1,000,000 b.A debit to Unrealized gain - OCI, P1,000,000 c.A debit to Financial asset - FVPL, P1,000,000 d.A debit to Unrealized gain - P/L, P1,000,000Compute for the VAT payable. 1) On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation, a VAT registered company, goods and paid a total amount P156,800, inclusive of VAT. on February 1, 2021, XYZ Corporation became liable to VAT. The goods were sold on February 28, 2021 for P280,000, VAT inclusive. Compute for the VAT payable. a. P30,000 b. P13,200 c. P27,200 d. P16,800 2. On January 2020, DEF Corporation is a VAT registered manufacturer of refined sugar, purchased in cash from STU Corporation, also a VAT registered company, sugar cane amounting to P80,000. The refined sugar produced were sold on January 2020 on credit for P150,000, VAT exclusive. Compute for the VAT payable. a. P18,000 b. P8,400 c. P14,800 d. P9,600 3. Bible Community of the Philippines, Inc. (BCPI)is registered with the Securities and Exchange Commission as a nonstock, not-for-profit corporation with the primary purpose of…lab Company’s accounting policy with respect to investment properties is to measure them at fair value at the end of each reporting period. One of its investment properties was measured at P8,000,000 on December 31, 2020.The property had been acquired on January 1, 2020 for a total of P7,600,000, made up of P6,900,000 paid to the vendor. P300,000 paid to the local authority as a property transfer tax and P400,000 paid to professional advisers. The useful life of the property is 40 years. What is the gain to be recognized in profit or loss for the year ended December 31, 2020 in respect of the investment property? * P400,000 P590,000 P700,000 P800,000 answer not given
