5. On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020.  The fair value of Pong’s shares was P6.50 per share on December 31, 2020.   Which statement is correct? Group of answer choices After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches.   Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.   Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500.

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A: Formula: Share capital = Number of shares issued x Issue price.

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Purchased price of share (40,000 Share * P100) P40,00,000 Add: Brokerage fees P1,20,000 Initial…

Q: On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s…

A: On 15.06.2021, LABAN company owns shares of GANGDULO company = 20000 shares Cost of purchase =…

Q: On July 1, 2020, Tomas Company's board of directors declared a 10% share dividend. The market price…

A: No. of shares issued under stock dividend = No. of outstanding ordinary shares x share dividend rate…

Q: On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to…

A: Treasury stocks are the stocks held by the company itself pursuant to its purchase from the market.

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

A: a) calculation of dividend income - SIKAP owns 10000 FVOCI shares which represent 10% of the total…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s…

A: Explanation of Concept Dividend is the part of earning which is been distributed to the shareholder…

Q: On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share…

A: The allocation of aum sum issue amount is given by  Ai = Mi/M * C Where Ai = amount allocated to…

Q: On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: Lets understand the basics. When one entity purchase more than 20% of the share and less than 50% of…

Q: Jackson Inc. purchased 30,000 shares of common stock of the Pixel Corporation $10 per share on…

A: calculation of revenue from investment and investment shown in balance sheet are as follows

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At December 21, 2020, BFAR Corp. had 20,000 treasury shares that had been reacquired in 2020 at PHP…

A: The treasury stock shares are the shares that are repurchased by the company from the shareholders…

Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…

A: In case of a company the shareholders are the owners of the company.

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Cost of the investment = Purchase cost + brokerage - dividend  = 40000*100 + 120000 -…

Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…

A: When the shareholder of an entity is given an invitation to purchase more or additional shares of…

Q: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is

A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…

Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: On January 1, 2020 Psy Company purchased all the net assets of SM Ent. Company: Issuance of 20,000…

A: Computation of Contingent liabilities: Settlement in the form of cash= Estimated settlement value x…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Total cost of investment = Purchase cost + Brokerage fee - dividend = 40000*100 + 120000 -…

Q: 5. On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

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Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

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Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

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Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…

A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…

Q: After all closing entries for 2020 are completed, the effect of the increase in fair value on total…

A: Purchase price =10000*6=60000 Earnings =3000 Share holders equity is same , does not change.

Q: At December 31, 2020, BFAR Corp. had 20,000 treasury shares that had been re-acquired in 2020 at P14…

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Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: It is pertinent to note that transaction costs incurred for equity instruments designated at fair…

Q: On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to…

A: No. of shares issued and outstanding = No. of shares issued - shares in the treasury = 65000 shares…

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A: Bonus shares are the shares which are issued to the existing shareholders free of charge. These are…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…

A: >Treasury Stocks are the shares that have been repurchased by the company from its stockholders…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Cost of Shares purchased : = 40000 shares * P100 per share  = 4000000   Brokerage Fees : 120000…

Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…

A: Solution: Amount should be credited to share capital on issuance = Nos of shares issued * Par value…

Q: In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the…

A: Buyback of shares - it means when the company buybacks its own holdings that was earlier subscribed…

Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.