General Corporation has the following investments in equity securities at December 31, 2002 (there are no existing balances in the market adjustment account): Percentage of Shares Owned SEI7IT Market Price Company Classification Shares Cost at 12/31/02 Clarke Corporation Marlin Company Trading Available-for-sale 1,000 2% S75 S78 4,000 15 34 32 Air Products, Inc. Available for-sale 3,000 10 46 43 Required: 1. Prepare any adjusting entries required at December 31, 2002 2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 2002. The available-for-sale securities are expected to be held for two to five years. 3. Prepare the journal entry on April 10, 2003, when General Corporation sold the Clarke Corporation investment for $72 per share.
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- Walsh, Inc. began business on January 1, 2002, and at December 31, 2002, Walsh had the following investment portfolios of equity securities: FVPL FVOCI Aggregate cost ₱150,000 ₱225,000 Aggregate fair value 120,000 185,000 None of the declines is judged to be other than temporary. Unrealized losses at December 31, 2002, should be recorded with corresponding charges against Profit or loss Equity Profit or loss Equity 70,000 0 30,000 40,000 40,000 30,000 0 70,000Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
- Presented below is information relating to the purchase of common stock by Jamison Company December 31, 2016. Cost Fair Value Investment in Readfield Company common stock $125,000 $115,500 Investment in Lee Company common stock $100,000 $ 80,000 Investment in Stern Company common stock $250,000 $300,000 Investment in Jones Company common stock $180,000 $190,000 $655,000 $685,500 These investments are classified as trading security by Jamison who uses portfolio approach to account for those investments. During the year 2017, Lee Company’s stock was sold for $102,000. Jamison purchased common…Investments in Stocks - This portfolio is composed of GKKB Company shares (GanyanKabaKatigasBash) and ABC Company shares. The shares were not held for trading and management has elected to designate the investments at fair value through other comprehensive income. Date Account Debit Credit May 3, 2020 Investment in GKKB Company 25,250 Broker's fee 1,000 Cash 26,250 To record the acquisition of GKKB shares and its related transaction cost Investment in ABC Company 32,450 Cash 32,450 To record the acquisition of ABC shares, acquired at P32.45 per share December 31, 2020 Unrealized Gain / (Loss) on market changes 400 Investment in ABC Company 1,500 Investment in GKKB Company 1,900 To record the market value adjustment for 2020 May 28, 2021 Investment in ABC Company 5,000 Dividend income 5,000 Received 100 shares of ABC Company in lieu of cash dividends of P5…Investments in Stocks - This portfolio is composed of GKKB Company shares (GanyanKabaKatigasBash) and ABC Company shares. The shares were not held for trading and management has elected to designate the investments at fair value through other comprehensive income. Date Account Debit Credit May 3, 2020 Investment in GKKB Company 25,250 Broker's fee 1,000 Cash 26,250 To record the acquisition of GKKB shares and its related transaction cost Investment in ABC Company 32,450 Cash 32,450 To record the acquisition of ABC shares, acquired at P32.45 per share December 31, 2020 Unrealized Gain / (Loss) on market changes 400 Investment in ABC Company 1,500 Investment in GKKB Company 1,900 To record the market value adjustment for 2020 May 28, 2021 Investment in ABC Company 5,000 Dividend income 5,000…
- Red Company had the following portfolio of equity securities to other comprehensive income at December 31, 2018:Security Cost Market ValueA 400,000 390,000B 700,000 660,000Total 1,100,000 1,050,000If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively. In Red's December 31, 2018 statement of financial position, how much should be reported as the carrying value of the portfolio? a. 1,050,000 b. 1,060,000 c. 1,100,000 d. 1,110,000Based on the presumption in IAS 27, the cost method is applied for equity securities when the percentage of ownership of another company is: Select one: A. 20% to 50%. B. Exactly 100%. C. Less than 20%. D. Over 50%.Culver Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $ 67,700 $ 63,000 5,000 shares of Wallace Corp., Common 164,700 159,600 400 shares of Martin, Inc., Preferred 59,300 61,100 $ 291,700 $ 283,700 All of the securities were purchased in 2020.In 2021, Culver completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common, @ $ 45 less fees of $ 1,200. April 1 Bought 700 shares of Earnhart Corp., Common, @ $ 75 plus fees of $ 1,300. Culver’s portfolio of equity securities appeared as follows on December 31, 2021. Investments Cost Fair Value 5,000 shares of Wallace Corp., Common $ 164,700 $ 159,600 700 shares of Earnhart Corp., Common 53,800 50,100 400 shares of Martin, Inc., Preferred 59,300 57,500…
- Kenseth Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., common $ 73,500 $ 69,000 5,000 shares of Wallace Corp., common 180,000 175,000 400 shares of Martin, Inc., preferred 60,000 61,600 $313,500 $305,600 All of the securities were purchased in 2020. In 2021, Kenseth completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., common, @ $45 less fees of $1,200. April 1 Bought 700 shares of Earnhart Corp., common, @ $75 plus fees of $1,300. Kenseth's portfolio of equity securities appeared as follows on December 31, 2021. Investments Cost Fair Value 5,000 shares of Wallace Corp., common $180,000 $175,000 700 shares of Earnhart Corp., common 53,800 50,400 400 shares of Martin, Inc., preferred 60,000 58,000…During 2021, Opulence Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were: Security Cost Market value A 1,000 shares 300,000 350,000 B 10,000 shares 1,700,000 1,550,000 C 20,000 shares 3,150,000 2,950,000 The entity sold 10,000 shares of B on January 5, 2022 for P 1,450,000 What total amount should be charged to Retained Earnings as a result of the sale of equity securities in 2022?Sandhill Company's equity securities portfolio which is appropriately included in current assets is as follows: December 31, 2021 Cost Fair Value UnrealizedGain (Loss) Catlett Corp. $220000 $183000 $-37000 Lyman, Inc. 209000 225000 16000 $429000 $408000 $-21000 Ignoring income taxes, what amount should be reported as a charge against income in Sandhill's 2021 income statement if 2021 is Sandhill's first year of operation? $37000 loss. $0. $21000 loss. $16000 gain.