Please make it in good accounting form. 1. Arizona Company acquired a financial asset not held for trading during the last quarter of theyear 2020 and measured it at fair value through other comprehensive income. An analysis of theinvestment in equity securities showed the following:Dec. 29, 2020 Fair Value (determine theclosing prices at edge.pse.com.ph)SecurityNumber of sharesCost per shareJFCP226.201,500,0002,200,0003,000,0003,800,000DMCIP9.10ALIP49.90BDOP137.40Required:a) Prepare one compound entry to record the purchase of the investment in equity securities.b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31,2020 statement of other comprehensive income?

A) First to Calculate the Stock Value Stock Value = Number of Shares * Cost per Share JFC Stock…

1. Arizona Company acquired a financial asset not held for trading during the last quarter of the year 2020 and measured it at fair value through other comprehensive income. An analysis of the investment in equity securities showed the following: Security Number of shares Cost per share Dec. 29, 2020 Fair Value (determine the closing prices at edge.pse.com.ph) 1,500,000 2,200,000 3,000,000 3,800,000 JFC P226.20 DMCI P9.10 ALI P49.90 BDO P137.40 Required: a) Prepare one compound entry to record the purchase of the investment in equity securities. b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31, 2020 statement of other comprehensive income?

1. Arizona Company acquired a financial asset not held for trading during the last quarter of the year 2020 and measured it at fair value through other comprehensive income. An analysis of the investment in equity securities showed the following: Security Number of shares Cost per share Dec. 29, 2020 Fair Value (determine the closing prices at edge.pse.com.ph) 1,500,000 2,200,000 3,000,000 3,800,000 JFC P226.20 DMCI P9.10 ALI P49.90 BDO P137.40 Required: a) Prepare one compound entry to record the purchase of the investment in equity securities. b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31, 2020 statement of other comprehensive income?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 16E

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