No. 2.8Dona Co, reports the following informations for 2017:No DescriptionSales Revenue2 Cost of goods soldOperating ExpenseUnrealized holding loss on non trading equity securities forAmount (Rp)750.000.000,-500.000.000,-380.000.000,-450.000.000,-2017Cash devidend paidBalance January 1, 2017 in share capital-ordinary10.000.000,-350.000.000,-56Balance January 1, 2017 in accumulated other comprehensiveincome related to the unrealized holding loss.8 Balance January 1, 2017 in Retained Earnings780.000.000,-90.000.000,-It issued no ordinary shares during 2017. Ignore income taxes.Instruction:Prepare a Statement of Changes in Equity.

Statement of changes in equity (statement of stockholder's equity) : It shows the changes in owner's…

Dona Čo, reports the following informations for 2017: No Description 1 Sales Revenue 2 Cost of goods sold 3 Operating Expense Unrealized holding loss on non trading equity securities for Amount (Rp) 750.000.000,- 500.000.000,- 80.000.000,- 4 50.000.000,- 2017 5 Cash devidend paid Balance January 1, 2017 in share capital-ordinary 10.000.000,- 350.000.000,- Balance January 1, 2017 in accumulated other comprehensive income related to the unrealized holding loss. 8 Balance January 1, 2017 in Retained Earnings 7 80.000.000,- 90.000.000,- It issued no ordinary shares during 2017. Ignore income taxes. Instruction: Prepare a Statement of Changes in Equity.

Dona Čo, reports the following informations for 2017: No Description 1 Sales Revenue 2 Cost of goods sold 3 Operating Expense Unrealized holding loss on non trading equity securities for Amount (Rp) 750.000.000,- 500.000.000,- 80.000.000,- 4 50.000.000,- 2017 5 Cash devidend paid Balance January 1, 2017 in share capital-ordinary 10.000.000,- 350.000.000,- Balance January 1, 2017 in accumulated other comprehensive income related to the unrealized holding loss. 8 Balance January 1, 2017 in Retained Earnings 7 80.000.000,- 90.000.000,- It issued no ordinary shares during 2017. Ignore income taxes. Instruction: Prepare a Statement of Changes in Equity.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
During 2017, Latvia Company purchased trading securities with the following cost and market value on December 31, 2017. Security Cost Market Value A – 1 000 shares 200 000 300 000 B – 10 000 shares 1 700 000 1 600 000 C – 20 000 shares 3 100 000 2 900 000 5 000 000 4 800 000 The entity sold 10 000 shares of security B on January 15, 2018, for P 150 per share. 1. What amount of unrealized gain or loss should be reported in income statement for 2017? 2. What amount should be reported as loss on sale of trading investment of 2018?
Part AAl Salam Company began operations in 2016. Since then, it has reported the following gains andlosses for its investments in trading securities on the income statement:2016 2017 2018Gains (losses) from sale of trading investments $15,000 $(20,000) $14,000Unrealized holding gains (losses) on valuation of tradinginvestments(25,000) 10,000 (30,000)RequiredFor Al Salam Company:Calculate the balance in the Fair Value Adjustment account at December 31, 2018 (after theadjusting entry for 2018 is made).Part BThe following scenarios are independent from each other1. Al Faris Corp. issued €6,000,000 par value 10% convertible bonds at 98. The liabilitycomponent alone would have been valued at 95.2. Al Rassam Company issued €7,000,000 par value 10% bonds for €6,860,000. One sharewarrant was issued with each €100 par value bond. At the time of issuance, the warrantswere selling for €4. The net present value of the bonds without the warrants was €6,720,000.3. Mazaya, Inc. had an 11%, €5,000,000…
Lexington Co. has the following securities outstanding on December 31, 2017 (its first year of operations). Cost Fair Value Greenspan Corp. stock $20,000 $19,000 Summerset Company stock 9,500 8,800 Tinkers Company stock 20,000 20,600 $49,500 $48,400 During 2018, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800 being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2018, was Greenspan Corp. stock $19,900; Tinkers Company stock $20,500.Instructions(a) What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of net income?(b) How should Lexington Co. report this information in its financial statements at December 31, 2017? Explain.(c) Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain.(d) Are there any additional entries necessary for Lexington Co. at December 31,…
The following information relates to Moran Co. for the year ended December 31, 2017: net income $1,245.7 million; unrealized holding loss of $10.9 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $57.2 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income, determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017.
The ledger of DIVA Co. shows the follow data: Retained Earnings Date Particulars Debit Credit 01/01/2012 Balance 40,300 06/30/2012 Dividends paid 12,500 12/31/2012 Net income for 2012 21,250 02/07/2013 Premium on share capital 5,000 04/30/2013 Loss on sale of land 2,500 09/30/2013 Dividends paid 10,000 12/31/2013 Net income for 2013 2,900 12/31/2013 Revaluation surplus 20,000 07/01/2014 Gain on sale of treasury stock 800 12/31/2014 Net income 2014 16,850 Unrealized loss on FVOCI securities 1,700 Compute for the correct balance of Retained Earnings on December 31, 2014.
Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
(Fair Value Measurement) Presented below is information related to the purchases of common stock by Lilly Company during 2017. Cost (at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $100,000 $ 80,000 Investment in Lee Corporation stock 250,000 300,000 Investment in Woods Inc. stock 180,000 190,000 Total $530,000 $570,000 Instructions(Assume a zero balance for any Fair Value Adjustment account.)(a) What entry would Lilly make at December 31, 2017, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option?(b) What entry(ies) would Lilly make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Lilly did not select the fair value option for these investments?
On January 1, 2015, Zhang Inc. had cash and share capital of P 10,000,000. At that date, thecompany had no other asset, liability, or equity balances. On January 5, it purchased for cashP6,000,000 of equity securities that it classified as non-trading. It received cash dividends of P800,000 during the year on these securities. In addition, it has an unrealized loss on thesesecurities of P 600,000. The tax rate is 20%. What is the amount of comprehensive income?
ABAKA Co. reported the following differences in the statement of financial position accounts on December 31, 2023 and 2022. Additional information: - Net income for the current year was P1,900,000 - During 2023, ABAKA Co. purchased trading securities for P900,000 cash and sold trading securities costing P500,000 for P800,000. On December 31, 2023, the market value of the remaining trading securities increased to P500,000. - Cash dividend of P500,000 was declared. - Equipment costing P800,000 and having a carrying amount of P550,000 was sold for P650,000. - Equipment costing P3,000,000 was acquired through issuance of long-term debt. - The long-term investment pertains to 20% common stock investment in SANDALS Corp. which was purchased on December 31, 2022. SANDALS Corp. reported 2023 net income at P5,000,000 and declared and paid dividends of P500,000. - 100,000 ordinary shares were issued for P20. Requirements: Determine the net cash provided by: a) Operating activities b)…
On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5,000,000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?
Jaybu Company acquired the following portfolio of equity instruments held for trading during 2022 and reported the following balances at December 31, 2022. No sales occurred during 2022. Security / Cost / Market Value, 12/31/22 AAA Company Shares / 300,000 / 350,000 BBB Company Shares / 450,000 / 410,000 CCC Company Shares / 540,000 / 640,000 DDD Company Shares / 610,000 / 650,000 How much is the unrealized gain that should be taken to profit or loss statement?