A Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares 1,200,000 Investment in Benguet ordinary shares, 10,000 shares 1,000,000 During the current year, the following transactions were completed: 1 Purchased 4,000 ordinary shares of SMDC for P300,000. 2 Received 2,000 ordinary shares of Benguet Company in lieu of cash dividends of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3 Purchased 6,000 ordinary shares of SMDC for P420,000. 4 Received semiannual dividend on SMC Company. 5 SMDC ordinary share was split on a 2-for-1 basis. 6 Sold 8,000 SDMC shares at P85 less transaction costs of 5%. Use average approach. Required: Prepare a summary of the portfolio of investments stating the number of shares and the corresponding costs.
A Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares 1,200,000 Investment in Benguet ordinary shares, 10,000 shares 1,000,000 During the current year, the following transactions were completed: 1 Purchased 4,000 ordinary shares of SMDC for P300,000. 2 Received 2,000 ordinary shares of Benguet Company in lieu of cash dividends of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3 Purchased 6,000 ordinary shares of SMDC for P420,000. 4 Received semiannual dividend on SMC Company. 5 SMDC ordinary share was split on a 2-for-1 basis. 6 Sold 8,000 SDMC shares at P85 less transaction costs of 5%. Use average approach. Required: Prepare a summary of the portfolio of investments stating the number of shares and the corresponding costs.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 9SPB: CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio...
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