On January 1, 2016, an entity purchased marketable equity securities not qualifying as financial asset held for trading. The entity elected to present changes in fair vake as component of other comprehensive income. On December 31, 2016, the securities have the following cost and market value: Cost Market Security A 1,000,000 1,100,000 Security B 2,000,000 2,700,000 Security C 3,000,000 2,800,000 6,000,000 6,600,000 1. What is the entry to record the unrealized gain or loss? 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 Cost Market Gain(Loss) Security A 1,000,000 1,100,000 Security B 2,000,000 2,700,000 Security C 3,000,000 2,800,000 6,000,000 6,600,000 2. On July 1, 2017, Security A was sold for P1,400,000. What is the journal entry to record the sale? The unrealized gain of P100,000 related to Security A is transferred to retained earnings.
On January 1, 2016, an entity purchased marketable equity securities not qualifying as financial asset held for trading. The entity elected to present changes in fair vake as component of other comprehensive income.
On December 31, 2016, the securities have the following cost and market value:
|
|
Cost |
Market |
|
Security A |
1,000,000 |
1,100,000 |
|
Security B |
2,000,000 |
2,700,000 |
|
Security C |
3,000,000 |
2,800,000 |
|
|
6,000,000 |
6,600,000 |
1. What is the entry to record the unrealized gain or loss?
100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000
100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000 100,000300,000Financial asset-FVOCI(200,000)Financial asset-OCIUnrealized gain-OCI700,000600,000Retained earnings1,400,000Cash1,100,000
|
|
Cost |
Market |
Gain(Loss) |
|
Security A |
1,000,000 |
1,100,000 |
|
|
Security B |
2,000,000 |
2,700,000 |
|
|
Security C |
3,000,000 |
2,800,000 |
|
|
|
6,000,000 |
6,600,000 |
|
2. On July 1, 2017, Security A was sold for P1,400,000. What is the
The unrealized gain of P100,000 related to Security A is transferred to
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
