On December 29, 20x1, ABC Co. acquires 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. Ownership over the financial asset transfers to ABC Co. on January 3, 20x2. The fair values per unit on December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, respectively Requirements: Provide the journal entries under the trade date accounting and the settlement date accounting assuming the financial asset purchased is classified as subsequently measured at: a. FVPL (held for trading securities), b. FVOCI (mandatory); and Amortized cost.
On December 29, 20x1, ABC Co. acquires 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. Ownership over the financial asset transfers to ABC Co. on January 3, 20x2. The fair values per unit on December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, respectively Requirements: Provide the journal entries under the trade date accounting and the settlement date accounting assuming the financial asset purchased is classified as subsequently measured at: a. FVPL (held for trading securities), b. FVOCI (mandatory); and Amortized cost.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
Related questions
Question
100%
On December 29, 20x1, ABC Co. acquires 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. Ownership over the financial asset transfers to ABC Co. on January 3, 20x2. The fair values per unit on December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, respectively
Requirements: Provide the
a. FVPL (held for trading securities),
b. FVOCI (mandatory);
and Amortized cost.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College