On December 29, 20x1, JALO Co. sold 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. The investment has a carrying amount of P1,200. Ownership over the financial asset transfers to the buyer, and JALO collects the sale price, on Jan. 3, 20x2. The fair values per unit are P1.75 on December 31, 20x1 and P1.50 on Jan. 3 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized Cost.

On December 29, 20x1, JALO Co. sold 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. The investment has a carrying amount of P1,200. Ownership over the financial asset transfers to the buyer, and JALO collects the sale price, on Jan. 3, 20x2. The fair values per unit are P1.75 on December 31, 20x1 and P1.50 on Jan. 3 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized Cost.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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