On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost of P150 per share and had a fair value of P130 per share at December 31, 2020. During 2021, Hazel acquired the following investments, all of which were designated as at fair value through other comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for P220 per chare. At the end of 2021, market values per share were:X - P140; Y - P170; Z - P200. The adjusting entry on December 31, 2021 would A decrease unrealized loss by P20,000. B increase unrealized loss by P15,000. © increase unrealized loss by P35,000. D decrease unrealized loss by P15,000.
On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost of P150 per share and had a fair value of P130 per share at December 31, 2020. During 2021, Hazel acquired the following investments, all of which were designated as at fair value through other comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for P220 per chare. At the end of 2021, market values per share were:X - P140; Y - P170; Z - P200. The adjusting entry on December 31, 2021 would A decrease unrealized loss by P20,000. B increase unrealized loss by P15,000. © increase unrealized loss by P35,000. D decrease unrealized loss by P15,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 21P: Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate...
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Transcribed Image Text:On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in
equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost
of P150 per share and had a fair value of P130 per share at December 31, 2020.
During 2021, Hazel acquired the following investments, all of which were designated as at fair value through other
comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for P220 per
share. At the end of 2021, market values per share were: X - P140; Y - P170; Z - P200.
The adjusting entry on December 31, 2021 would
(A decrease unrealized loss by P20,000.
B increase unrealized loss by P15,000.
increase unrealized loss by P35,000.
(D decrease unrealized loss by P15,000.
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