Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a share dividend of 2,000 on September 1, 2020, when the carrying value per on XYZ Corporation's books was P30 per share, and the market price is P33 per share. XYZ Corporation paid a cash dividend of P10 per share on October 31, 2020, declared on September 30, 2020, of record October 15, 2020. Requirement: 1. Prepare the necessary journal entries to record September 1, 2020, and October 31, 2020.

Q: On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: On July 1, 2021, Focus Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: The profit made from assets including property and investment securities is known as investment…

Q: epare the journal entries for Grouper for 2019 and 2020, assuming that Grouper cannot exercise…

A:

Q: Pharoah Company owns 3200 of the 10000 outstanding shares of Sheridan Corporation common stock.…

A: % of shares = No. of shares hold / Total outstanding shares of Sheridan Corporation = 3200/10000 =…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a…

A: SOLUTION- DIVIDEND INCOME- IT IS DEFINED AS THE DISTRIBUTION OF ENTITY PROPERTY TO ITS SHAREHOLDERS.…

Q: STAR Company purchased 10,000 shares of MOON Corporation ordinary shares at P90 share on January 3,…

A: Here discuss about the details of dividend income and its accounting treatment which are received in…

Q: Soprano Co. acquired 50,000 ordinary shares of Alto Co. on September 30, 2019 for P8,250,000. On…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: On December 31, 2020, R papa Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: An investment in other entity can be recorded using two methods; 1) Fair value method, and 2) Equity…

Q: On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be…

A: Right shares are the shares issued after original issue to the existing shareholder to purchase more…

Q: AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10…

A: Stockholders Equity (often recognized as Stakeholders Equity) seems to be a balance-sheet statement…

Q: On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: Lets understand the basics. When one entity purchase more than 20% of the share and less than 50% of…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

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

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

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…

A: In case of a company the shareholders are the owners of the company.

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: Gangnamn Inc owns 50% of Ps

A: An income statement is one of the financial statements which have to be prepared by the company at…

Q: Forest Company owns 20,000 shares of Plantation Company’s 200,000 shares of P100 par, 6% cumulative,…

A: Forest company owns Plantation company's 6% cumulative, non participating preference shares = 20000…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2018 for P660,000.…

A: Answer with explanation are as follows

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: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is

A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…

Q: In January 2021, Tawatinaw Group paid $650,000 for 60,000 shares of Neerlandia Inc. giving Tawatinaw…

A: given   In January 2021, Tawatinaw Group paid $650,000 for 60,000 shares of Neerlandia Inc., giving…

Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: Grouper Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The…

A: Step1 Under equity method, return is not accountable, i.e., dividend is not considered and in fair…

Q: Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1,…

A: 1) journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise…

Q: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…

A: Right Shares: - Right shares are those shares that are issued by the company to its existing…

Q: On January 1, 2020, Culver Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

A: As Culver co. holding 30% of equity in john co. and can exercise significance influence ,equity…

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The income statement of a company represents the outcome of the operations of the business in terms…

Q: . On October 1, 2020, VIOLETS was granted the right to purchase 1 share at ₱105 for every 4 rights…

A: Cash dividend is a cash declared and distributed by a company to equity shareholders in the form of…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

A:

Q: ethod and assume that Walter ordinary shares should be classified as a trading security. (Use “FVTPL…

A: a) In the books of M/s Control Alt Deign Journal     Date Particulars Dr($) Cr($) 1 Jan 2020…

Q: hares of POPPY Company par ₱100 at ₱120 in March 2020 VIOLETS received a share dividend of 1 share…

A: Average unit cost is calculated by the total cost or investment divided by the total number of unit…

Q: On December 20, 2018, Ball Corporation purchased 30,000 shares of Pencil Company's shares at P100…

A: Trading securities are the securities in which the entity invests and held them for selling in the…

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for…

A: The investment income is recorded in the income statement for dividend revenue or income due to…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…

Q: Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2,…

A: Given, Total Dividend paid=P600,000Total ordinary shares outstanding=1,000,000 ordinary shares

Q: TJH Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…

A: Tje shareholders' equity section represents the total equity belongings to shareholders.

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The journal entries can be defined as the base of accounting because the business transaction is…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: r market values. Assume income was earned evenly throughout the year except for the intercompany…

A: The balance sheet is a statement prepared to ascertain the true position of assets and liabilities…

Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…

A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…

Q: Borgin inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to…

A: Balance in the investment account at the end of the year is the summation of the initial investment…

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.