In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following Investment in Ordinary Shares and Dividend Income accounts were presented to you: Investment in Ordinary Shares Date Description Ref. Debit Credit 01/15 10,000 ordinary shares, par value P50, SPIKES Co. VR-18 390,000 04/30 5,000 shares SPIKES Co. received as share dividend CJ-7 250,000 05/20 Sold 5,000 shares @ P25 CR-21 125,000 12/10 Sold 2,000 shares @ P60 CR-S2 120,000 Dividend Income Date Description Ref. Debit Credit 04/30 Share dividend SJ-7 250,000 11/30 SPIKES Company ordinary CR-22 50,000 The following information was obtained during your examination: From independent sources, you determine the following dividend information: Type of Dividend Date Declared Date of Record Date of Payment Rate Share Cash Cash 03/15/20 11/01/20 12/01/20 04/01/20 11/15/20 12/15/20 04/30/20 11/28/20 01/02/21 50% P5/share 20% Closing market quotation as at December 31, 2020: Bid Ask SPIKES Company ordinary 13-3/4 16-1/2 Required: How much is the gain on the December 10 sale? How much is the total dividend income for the year? How much is the adjusted carrying amount of Investment in Ordinary Shares as of December 31, 2020?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 69E: Stock Dividends Crystal Corporation has the following information regarding its common stock: S10...

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In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following Investment in Ordinary Shares and Dividend Income accounts were presented to you:

Investment in Ordinary Shares

Date	Description	Ref.	Debit	Credit
01/15	10,000 ordinary shares, par value P50, SPIKES Co.	VR-18	390,000
04/30	5,000 shares SPIKES Co. received as share dividend	CJ-7	250,000
05/20	Sold 5,000 shares @ P25	CR-21		125,000
12/10	Sold 2,000 shares @ P60	CR-S2		120,000

Dividend Income

Date	Description	Ref.	Debit	Credit
04/30	Share dividend	SJ-7		250,000
11/30	SPIKES Company ordinary	CR-22		50,000

The following information was obtained during your examination:

From independent sources, you determine the following dividend information:

Type of Dividend

Date

Declared

Date of

Record

Date of

Payment

Rate

Cash

03/15/20

11/01/20

12/01/20

04/01/20

11/15/20

12/15/20

04/30/20

11/28/20

01/02/21

50%

P5/share

20%

Closing market quotation as at December 31, 2020:

	Bid	Ask
SPIKES Company ordinary	13-3/4	16-1/2

Required:

How much is the gain on the December 10 sale?
How much is the total dividend income for the year?
How much is the adjusted carrying amount of Investment in Ordinary Shares as of December 31, 2020?

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