*What amount of unrealized gain on these securities should be reported in the 2020 income statement? *What is the gain on the sale of Camias Co. ordinary shares on March 1, 2020? *What amount should be reported as trading securities in Labada’s statement of financial position on December 31, 2020? For numbers 29 to 31LABADA CO.'s portfolio of trading securities includes the following on December 31, 2019:CostFair Value15,000 ordinary shares of Camias Co.P1,431,000P1,251,00030,000 ordinary shares of Ganda Co.1,638,0001,710,000P3,069,000P2,961,000All of the above securities have been purchased in 2019. In 2020, Labada Co. completed thefollowing securities transactions:Mar. 1 Sold 15,000 shares of Camias Co. ordinary shares at P93April 1 Bought 1,800 ordinary shares of Waston, Inc. at P135 plus commission, taxes, andother transaction costs of P4,950.The Labada Co. portfolio of trading securities appeared as follows on December 31, 2020:CostFair Value30,000 ordinary shares of Ganda Co.P1,638,000P1,740,000 !1,800 ordinary shares of Waston, Inc.247,950225,000 2P1.885.950P1.965.000' Net of P19,500 estimated transaction costs that would be incurred on the sale of the securities.2 Net of P4,500 estimated transaction costs that would be incurred on the sale of the securities.

Trading securities are those types of securities which are held by the business to earn profit by…

Answered: For numbers 29 to 31 LABADA CO.'s…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 18E: Trading Securities Pear Investments began operations in 2020 and invests in securities classified as...

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*What amount of unrealized gain on these securities should be reported in the 2020 income statement?

*What is the gain on the sale of Camias Co. ordinary shares on March 1, 2020?

*What amount should be reported as trading securities in Labada’s statement of financial position on December 31, 2020?

For numbers 29 to 31
LABADA CO.'s portfolio of trading securities includes the following on December 31, 2019:
Cost
Fair Value
15,000 ordinary shares of Camias Co.
P1,431,000
P1,251,000
30,000 ordinary shares of Ganda Co.
1,638,000
1,710,000
P3,069,000
P2,961,000
All of the above securities have been purchased in 2019. In 2020, Labada Co. completed the
following securities transactions:
Mar. 1 Sold 15,000 shares of Camias Co. ordinary shares at P93
April 1 Bought 1,800 ordinary shares of Waston, Inc. at P135 plus commission, taxes, and
other transaction costs of P4,950.
The Labada Co. portfolio of trading securities appeared as follows on December 31, 2020:
Cost
Fair Value
30,000 ordinary shares of Ganda Co.
P1,638,000
P1,740,000 !
1,800 ordinary shares of Waston, Inc.
247,950
225,000 2
P1.885.950
P1.965.000
' Net of P19,500 estimated transaction costs that would be incurred on the sale of the securities.
2 Net of P4,500 estimated transaction costs that would be incurred on the sale of the securities.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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