At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The shares were designated as FVOCI investment. On July 31, 2022, Rose, Inc. sold all of its Mark, Inc.’s shares for $1,200,000. How much will be closed to Retained Earnings at the end of 2022 as a result of this sale?

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Here in this question, we are required to calculate implied goodwill from acquisition. When acquirer…

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A:

Q: On December 31, 2020, Lea Company, an entity with no subsidiary, purchased 10,000 ordinary shares of…

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A: A journal entry is used to record the day-to-day transactions of an organization by debiting and…

Q: In January 2019, Janeway AG doubled the amount of its outstanding shares by selling an additional…

A:

Q: On January 1, 2020, Choco Co. pays $96,000 to acquire 30% of the voting common stock of Cake Inc.…

A: Under equity method, the debit balance of investment account will be affected b positively by income…

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A: In a consolidated financial statement, the inter-group transactions and unrealized gains on these…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A:

Q: Boxer Company owned 20,000 shares of King Company that were purchased in 2019 for $500,000. On May…

A:

Q: What amount should Justine Company report as investment in associate on December 31, 2020?

A: Justine Company, an SME, bought 20% of another entity’s ordinary shares on January 1, 2020 for…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The calculation of holding gain that should David report in equity on December 31 is shown hereunder…

Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no…

A: Solution: Promenade Company purchased 25% of Twilight Company’s ordinary shares. It means Promenade…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: Value of investment on 31 dec 2022  = (1,000-400)x200 = P120,000 Value of investment on 31 dec 2021…

Q: January 1, 2022, ABC Company purchased 70% of ordinary shares of XYZ Company at a price of…

A: Consolidation of Holdings by one company of other company, it is given that ABC co. purchased the…

Q: Cullumber Company acquired 28% of the outstanding common stock of Grinwold Inc. on January 1, 2020,…

A: The cost method adjust the investment on the basis of fair value of investment.  The equity method…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid OMR…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: On January 1, 2021, Mojito Corporation purchased 25% (20,000 shares) of the outstanding stock of…

A: When a parent company holds 20-50% in another company then it is known as an associate company.

Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…

A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

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A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Holding % = No. of shares acquired / total no. of shares = 30000 / 100000 = 30%

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Holding % = No. of shares acquired / total no. of shares = 30000 / 100000 = 30%

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A: Earning per share is the portion of the total earnings of the company which is to be distributed to…

Q: On July 1, 2020, Selig Company purchased for cash 30% of the outstanding common stock of Spoor…

A: Equity method: Most common accounting technique used by the organization to get the access on…

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A: Non-controlling interest is the minority interest where shareholders hold less than 50% of the…

Q: On January 1, 2020, Culver Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

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Q: On December 30, 2020, Aloha Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: Using equity method, the investment value is decreased with receipt of dividend and increased with…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A:

Q: On January 1, 2021, Patter Corp. purchased 80% of the outstanding shares of Saturn Co. at a cost of…

A: Solution Working- 1- Amortization excess = 50000/4 =12500. 2-Inter company dividend =…

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

A: Investment means engaging the funds to generate income for the coming years. Investment can be made…

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

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Q: On September 1, 2019, Eli Company purchased 35% of the outstanding ordinary shares of Long…

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Q: On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On April 1, 2019, Star Company purchased 30,000 ordinary shares of Moon Company at P180 per share, a…

A: The investment in equity shares of another company is recorded in the books of investor either by…

Q: On January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On January 1, 2020, Sarasota Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

A: Share of Investment It is the practice of the corporate business to buy the shares of the another…

Q: On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for…

A: The investment income is recorded in the income statement for dividend revenue or income due to…

Q: At the beginning of 2021, Nobela Corporation bought 15% ownership stake in Joseph Corporation for…

A: In the investment of associate, we valued the investment value at the end of each year by the equity…

Q: On August 1, 2020, Whispering Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: On January 1, 2019, Long Corporation acquired 30% of the outstanding common shares of Feeley…

A: Part 1:

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of PQR by paying P740,000. On that…

A: Working note -1 Calculation of profit on sale of fixed assets from ABC to PQR-…

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: The carrying amount of investment is adjusted by the cost of acquisition followed by payment of cash…

Q: At the beginning of 2022, Sana Co. purchased 4,500 of the 10,000 outstanding stock of Mina Co. This…

A: Significant influence is a condition which arises when an entity purchase or acquire 20% to 50% of…

Q: On April 1, 2019, Star Company purchased 30,000 ordinary shares of Moon Company at P180 per share, a…

A:

Q: How much unrealized holding gain should Lover report in profit or loss for the year 2022?

A: The calculation of unrealised holding gain that should be reported in profit or loss for the year…