Gera Corporation owns two financial investments in the shares of listed companies. Details of which are as follows:  Investment  1 – Acquired on September 1, 2020, at a cost of P50,000 with a Fair value of P60,000 at year-end for the purpose of trading. Investment 2 -  Acquired on August 1, 2020, at a cost of P25,000 to hold indefinitely. Its fair value at year-end is P20,000  What are the amounts to appear in the Statement of Financial position for the year ended September 30, 2020?

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Q: The adjusting entry on December 31, 2021 would

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A: The question is related to Equity Section of a company. Given : ABC will issue 10,000 shares of its…

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A:

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A: NOTE : As per BARTLEBY guidelines, when multiple sub parts of the question are given then first…

Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: FVOCI method accounts fair value adjustment through OCI.

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A: As per International Financial Reporting Standard 9, the financial assets are measured at Fair…

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A: Realized Gain on Sale:- It is a result of the selling of assets at a price higher than the original…

Q: What amount of unrealized gain should Sisig Corp. report in its December 31, 2020 Statement of…

A: Unrealized gain is the gain which has been earned by the company when the investment is measured at…

Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…

A: Here discuss about the purchase and sale of share investment which are made through the fair value…

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: The details of two investments made by the company are as follows:   Investment  1 – Acquired on…

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: On January 1, 202X, Anna Corporation acquires 60% of the equity capital of Papa Corporation. On this…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given, then first three sub parts are…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: Acquisition is a process where a company purchases most or all the shares of another company to have…

Q: Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31,…

A: The fair value (FV) method for recording the investment-related transaction made the corporation…

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A: Shareholder equity includes ordinary shares + Share premium + Retained Earnings

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A: Ordinary Shares of Octane = P150000 Par Value per Share             = P5

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A: Gain on Disposal of Investment:- When an entity earns the value of investment more than its carrying…

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A: Purchase consideration: Fair value of the equity investment + Purchase price paid for acquiring…

Q: On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the…

A: Answer: Jan 1 2020: 15000 shares with cost of P1,400,000 Dec 31,2020: 15000 shares with fair market…

Q: On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000…

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Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing e…

A: Dianne Corporation pays Cyril Corporation in shares and cash as purchase consideration for Cyril…

Q: On December 31, 2020, Hotel Company held 1,000 ordinary shares of Regent Company in its portfolio of…

A: Adjusting entry refers to the type of journal entry which is issued in a company's general ledger at…

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: A realized gain refers to the difference between the sales value and original purchase value.

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A:

Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: Fair value through OCI methods accounts the fair value adjustment through OCI.

Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: Jon company owns two financial investments in the shares of listed companies. With the following…

A: The details of investment of a company  are as follows:  Investment  1 – Acquired on September 1,…

Q: On January 1, 202X, Anna Corporation (AC) acquires 60% of the equity capital of Papa Corporation. On…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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,…

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A: Change  in fair value  is recognized as  unrealized gain or loss

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: Investment in shares means where one company buys the share of another company and held as…

Q: In the December 31, 2020, statement of financial position, what is the carrying amount of the…

A: correct option with all workings are as follows

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Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

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Q: ABC Company and XYZ Company have announced terms of an exchange agreement under which ABC will issue…

A: Solution  Ordinary share  also called common shares , are stock sold on a public exchange.

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A: Consolidated Balance sheet: Consolidated balance sheet refers to the balance sheet prepared with the…

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Q: What amount of unrealized gain or (loss) should be reported in the statement of comprehensive income…

A: The statement of the comprehensive income is the statement that records all the unrealized revenge,…

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…

Q: On 1 July 2021, King Ltd acquired all the share capital of Queen Ltd for $1,800,000, and on that…

A: The following table shows the calculation of goodwill on acquisition: Particulars Amount Amount…

Q: elow) Based on the information provided, what amount will be reported for Ordinary Share in the…

A: Ordinary Shares of Octane = P150000 Par Value per Share             = P5 Number of Share = P150000 ÷…

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.