Daron Co. purchased 20.000 shares of Herkul Co on 2 April 2018. Share price of Herkul Co. was 6 $. Daron company also paid a total commission of 500 $. On 1 June Daron company received a total dividend of 2.000 $ from Herkul Co. The share price of Herkul Co. on 312.2018 was 7 $. Daron company classified this investment as Fair Value Through Profit or Loss (FVTPL) Investments. Make the necessary journal entries

Q: During the year 2018 Nestle sold 3,000 shares of LJ, Inc. for P119,700 and 500 shares of Dwarfy…

A: Carrying amount of 3000 shares of LJ Inc = P 180,000 Sale Consideration of 3000 shares of LJ Inc = P…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: On January 2, 2017, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: Investment Income For Recognize of investment income which has to be the fair value at the end of…

Q: During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000…

A: Answer 2) As per Ind AS-2, inventory is valued at cost or NRV whichever is lower. This is seen as…

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A: The acronym "FVPL" stands for Fair Value Through Profit or Loss, these types of securities are not…

Q: On January 2, 2022, P Company purchased the net asset of S Company by paying P500,000 cash and…

A: When a company acquires the shares of another company in order to acquire a controlling interest, it…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares gets increased by profits and decreased by dividend received.

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: Since the Parent acquired 30% interest in the Sub, the Sub is an associate enterprise. Accounting…

Q: On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in…

A: Measurements of Investment-: In addition to common deviation, a bond's or bond fund's risk is…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: When an investment in an entity increases and it is increased to the level that the investee company…

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

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: Amount of profit in 2018 P1,60,000   Share of Profit (P160000 * 25%) P40,000         Account…

Q: Bayview Company bought 1,000 shares of PLDT shares as equity investments on January 10, Year 2 at…

A: Investment in equity securities is one of the important asset of the business. Dividends are also…

Q: On December 31, 2014, how much should MARIE CORP. carry its investment in CURIE INC.?

A: In case of equity method, the purchase value of investment would be adjusted for share in equity for…

Q: Tulip Corp. purchased 300,000 shares of common stock in Sherman Co. for $50 per share on January 2,…

A: Income statement is the financial statement which is prepared to show the profitability of an…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…

Q: On January 1, 2013, the Sara Company entered into a transaction for acquisition of assets and…

A: SOLUTION-   WORKING NOTE- SARA'S APIC ON ACQUISITION DATE $1080. APIC ADJUSTMENTS RELATED TO ANA…

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company from 20% to 50% , then it is called as…

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A: Investment is the amount which is put into some assets or securities to gain some returns in future.…

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A: Answer-      Particulars Amount     Investment balance as at December 31, 2016 1900000…

Q: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…

A: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…

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A: The company makes several investments to earn more income. When a company purchases the shares of…

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A: As per PFRS 3, Business combination, On acquisition of control, to adopt the acquisition method of…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: Here,  Parent acquired 30% interest in Subsidiary on January 1, 2018. Since the parent acquired…

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A: Here, the investment in S ltd is to be given.

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: SOLUTION- GOODWILL IS THE VALUE OF BUSINESS THAT EXCEEDS ITS ASSETS MINUS THE LIABILITIES.

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A: In this question, Logic company has purchased 4000 shares at P30/share of Midi Inc during 2012 out…

Q: On January 1, 2013, the Sara Company entered into a transaction for acquisition of assets and…

A:

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: SOLUTION GOODWILL IS AN INTANGIBLE ASSET THAT ACCOUNTS FOR THE EXCESS PURCHASE PRICE OF ANOTHER…

Q: On January 1, 2018, Parent acquired 30,000 out of 100,000 outstanding ordinary shares of Sub for…

A: SOLUTION WORKING- HIGHER BETWEEN TWO: FAIR VALUE = 50000. FAIR VALUE PROPORTIONATE SHARE…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The realized gain refers to the gain that is converted into cash by the company by selling off the…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Solution: Share in Saleh's dividend in 2017 = Total dividend paid * % holding of AI = OMR 40,000 *…

Q: Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the…

A: Under equity method  for the investment, the investor records the investees dividend and net income…

Q: Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Investment at fair value = no. of shares x  fair value per share = 49,800 shares x $29 per share =…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises & investment…

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A: Entity H acquired 25% share, therefore its share in profit  = 25% x 160000 = 40000

Q: On January 1, 2011, ABC Co. purchased 20,000 shares of the 100,000 total outstanding shares of P Inc…

A: Thanks for the Question. Bartleby's Guideline “Since you have posted a question with multiple…

Q: During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000…

A: Solution b: Carrying value of investment on Dec 31, 2017 = Fair value of portfolio = P282,000

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares of another company (assets) gets increased with profits and and decrease…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200.…

A: Revenue for 2020 (Net income x 30%) $ 136,800     Balance in investment account:…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On January 1, 2013, the Sara Company entered into a transaction for acquisition of assets and…

A: Combined additional paid-in capital = Sara's additional paid-in capital on acquisition date  +…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary sha…

A: When shares for investment are purchased, they are recorded at the cost. At the end of every…

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.