In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 security a 1,500,000 120,000 1,800,000 security b 2,200,000 190,000 3,000,000 security c 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000. What amount of gain on sale should be received in the income statement for 2020?
Q: During 2022, Merry Co. purchased the following shares which it classified as FVPL investment:…
A: Ans. Shares should be valued at Fair value on 31st December 2022: To value the shares we will look…
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: During 2021, the first year of operations, Dejavu Company purchased the following equity securities:…
A: As per IFRS 9, a Financial instrument, the financial asset held for trading is measured at fair…
Q: Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and…
A: Fair value of Financial asset @ FVOCI at 12/31/2020 P50,00,000 Fair value of Financial asset @…
Q: unrealized gain or loss?
A: During 2020 , Boston Company purchased marketable securities as a trading investment. At the end 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: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss…
A: 1.Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: Hobson Company bought the securities listed below during 2020. These securities were classified as…
A: An unrealized loss is a decrease in the value of an ongoing investment.
Q: Answer should be presented as: DECREASE 123456 or INCREASE 123456 :During 2021, the first year of…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: Bentley Company acquires Joslyn Company debt securities on Januart 1, 2020 for $15,000. Upon…
A: Securities available for sale indicate the purchase of equity stocks made by the company for resale…
Q: Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at…
A: Given that: Acquisition costs = P3,600,000 Direct costs incurred = P630,000 At the end, Fair value…
Q: On January 1, 2019, Pat Archi Inc purchased marketable equity securities for P2,000,000. The…
A: The question is related to Financial Assets. It is given that the securities do not qualify as…
Q: Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and…
A: The gain or loss on fair value measurement of trading security is transferred to profit and loss…
Q: Atlas Company purchased the following investments during 2020: Classification Cost Market Value…
A: SOLUTION- ATLAS CO FOR THE YEAR ENDED 2020- SECURITY A OF COST = P900000 MARKET VALUE OF A =…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: On January 1, 2020, DEF Company purchased equity securities for P18,000,000. The entity paid the…
A: The fair value change on the financial instrument that is measured at FVOCI is an unrealized…
Q: On January 1, 2020, the Soondubu Stew Corporation purchased equity securities to be held fo ading…
A: Given, Acquisition cost of securities = P2,000,000 Commission and taxes = P50,000 Fair value of…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Financial assets are recognized at their historical costs in initial measurement and the difference…
Q: During 2021, the first year of operations, Beneath Company purchased the following equity…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…
A: Here discuss about the purchase and sale of share investment which are made through the fair value…
Q: Albers Company acquires an 80% interest in Barker Company on January 1, 2015, for $850,000. The…
A: Equity method: The equity method keeps the record of the parent ownership interest that is…
Q: In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated…
A: Answer: As per IFRS 9, Financial instruments, there are two different methods for classification of…
Q: During 2020, Sheridan Company purchased 85000 shares of Pina Corporation common stock for $1310000…
A: Realized gain: It refers to the gain that arises as a result of selling an asset at a price that…
Q: During 2021, Lavida Loca Company purchased trading securities with the following cost and market…
A: Total cost of trading securities = 300,000 + 1,500,000 + 3,800,000 = 5,600,000 Total market value of…
Q: On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also…
A: OCI generally includes the incomes/expense/gains/losses that are going to be realized in future but…
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: Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon…
A: The investment securities can be held as investment held for trading, investment held for sale, or…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Income statement is the financial statement that shows income and expenditure. It is also known as…
Q: During 2020, Carpenters Corporation purchased equity securities and carried them at fair value…
A: Fair value: It implies to the actual price that is to be received by the seller on selling it's…
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: On January 1, 2020, the Evergreen Corporation purchased marketable equity securities for P2,000,000.…
A: Investment in equity securities is the current or non-current investment made by the firm in the…
Q: Velasco Corporation should report cash equivalents in its December 31, 2019 statement of financial…
A: Cash and Cash equivalents: This item is to be reported as a current asset on the balance…
Q: On April 11, 2020, Bramble Corp. purchased as a long-term investment (accounted for using FV-OCI…
A: Gain on Disposal of Investment:- When an entity earns the value of investment more than its carrying…
Q: Ramirez Company has a held-for-collection investment in the 6%, 20-year bonds of Soto Company. The…
A: GAAP - Generally Accepted Accounting Principles refer to a common set of accounting principles,…
Q: On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price…
A: Accounting for Equity securities: FVTNI Classified as Fair Value through net income ( FTVNI ) -…
Q: On January 1, 2019, Uncle Company purchased 80 percent of Nephew Company's capital stock for…
A: Goodwill = Sale Consideration + Fair Value of Non Controlling Interest - Book Value
Q: On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading…
A: For measurements under FVTOCI the transaction cost will be debited to profit or loss account…
Q: the required year-end adjusting entry for this investment is:
A: The purchase cost of shares is $45000 whereas the fair value at the end of the year is $42160. Hence…
Q: In 2019, Edward Company purchased equity securities as a trading investment. For the year ended…
A: Workings:
Q: During 2019 Lovely Company purchased trading securities with the following cost and market value on…
A: A firm may purchase financial assets to invest its surplus cash in order to earn some extra income.…
Q: On March 1, 2019, Carol Company bought the common shares of two companies with a 20% ownership share…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
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: On January 3. 2019. Cullumber Company purchased for $s05.000 cash a 10% interest in Riverbed Corp.…
A: Here discuss about the accounting treatment of the Equity investment which are classified for the…
Q: ition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and…
A: Investment in securities classified as fair value through other comprehensive income on the…
Q: During 2020, Cullumber Company purchased 69000 shares of Marigold Corporation common stock for…
A: Gain or loss on sale of stock is based on the net sale price of the asset and the cost of purchase…
Q: In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably…
A: Unrealized losses and gains are included in the other comprehensive income because the losses and…
Q: Powerpuff Company purchased the following securities during 2020, all of which are classified as…
A: Journal entries are prepared to record the financial and non-financial transactions of the business.
Q: On January 1, 2019, Arwin Company purchased P2,000,000 ordinary life policy on its president. The…
A: The sum paid to insurance firms to cover the risk of a catastrophic is referred to as the insurance…
Q: A Company had various equity investments at fair value through profit or loss transactions during…
A: Unrealized gain/loss during the year=Market Value of investments in Current Year-Market Value of…
Q: On January 1, 2019, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle…
A:
In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI:
Purchased Price | Transaction Cost | Market Value on Dec. 31, 2019 | |
security a | 1,500,000 | 120,000 | 1,800,000 |
security b | 2,200,000 | 190,000 | 3,000,000 |
security c | 3,500,000 | 250,000 | 4,000,000 |
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
Step by step
Solved in 2 steps
- Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019Security A 1,500,000 120,000 1,800,000Security B 2,200,000 190,000 3,000,000Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.What amount of gain on sale should be received in the income statement for 2020? choices 800,000 500,000 300,000 0During 2019, the first year of operation, Maly Corporation made various investments in trading securities. On December 31, 2019, the investments had the following cost and market value: Cost Market Value P 1,300,000 800,000 1,000,000 12/31/2019 P 1,250,000 900,000 700,000 XYZ MNO FGH How much should be included as unrealized loss on the income statement for the year 2019?
- 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 lossAnswer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 Security One Security Two Security Three Security Faur Cost 2,200,000 700,000 December 31, 2021 1,400,000 1,000,000 1,500,000 2,500,000 1,600,000 2,000,000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Fair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for P500,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities (indicate whether increase or decrease)?Answer should be presented as: DECREASE 123456 or INCREASE 123456 :During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Security One Security Two Security Three Security Four Cost 2,200,000 700,000 1,600.000 2,000,000 December 31, 2021 1,400,000 1,000,000 1,500.000 Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 2,500.000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Jair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for PS00,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities findicate whether increase or decrease)?
- . During 2019, Blackpink Company purchased marketable equity securities to be measured at fair value through other comprehensive income. On December 31, 2019, the balance in the unrealized loss on these securities was P200,000. There were no security transactions during 2020. Pertinent data on December 31, 2020 are: Cost Security Value Marketable A 2,100,000 1,600,000 1,850,000 2,000,000 C 1,050,000 900,000 In the statement of changes in equity for 2020, what amount should be included as cumulative unrealized loss as component of other comprehensive income? *Problem 15-8 (AICPA Adapted) During 2019, Haggard Company purchased marketable equity. securities for P1,850,000 to be held as trading investments. In 2019, the entity appropriately reported an unrealized loss of P200,000 in the income statement. There was no change during 2019 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2020 are: Security Cost Market value A B 600,000 450,000 800,000 700,000 400,000 900,000 What amount of unrealized gain on these securities should be included in the 2020 income statement? 350,000 150,000 550,000 d. с.At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $50,000 $63,000 B 75,000 71,000 Totals $125,000 $134,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $63,000 plus interest of $1,000. Dec. 31 Received interest of $900 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $82,000 C 53,000 Required: 1. Prepare journal entries to record the preceding information. 2. What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for available-for-sale…
- At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $44,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? fill in the blankIn March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably designated at FV-OCI. On December 31, 2019, the balance in the unrealized gain/(loss) on these securities was P200,000. During 2020, stock FF was sold for P1,100,000. Pertinent data on Dec. 31, 2020 are as follows: Cost Market Value DD P2,100,000 P1,600,000 2,000,000 900,000 In its statement of changes in stockholder's equity for the EE 1,850,000 FF 1,050,000 year 2020, Boyet should report unrealized holding loss at what amount?In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably designated at FV-OCI. On December 31, 2019, the balance in the unrealized gain/(loss) on these securities was P200,000. During 2020, stock FF was sold for P1,100,000. Pertinent data on Dec. 31, 2020 are as follows: Cost Market Value DD P2,100,000 P1,600,000 EE 1,850,000 2,000,000 FF 1,050,000 900,000 In its statement of changes in stockholder's equity for the year 2020, Boyet should report unrealized holding loss at what amount?