On January 1, 2019 an entity acquired non-trading equity securities irrevocably elected at FVOCI SECURITIES COST FV- 12/31/2019 FV- 12/31/2020 6,000,000 4,000,000 A 5,700,000 B 4,800,000 4,500,000 5,000,000 5,500,000 5,900,000 The entity sold Security A on December 15, 2020 for 7,000,000.
Q: On January 1, 2016, an entity purchased marketable equity securities not qualifying as financial…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: During 2020, Crane Company purchased 91000 shares of Novak Corporation common stock for $1370000 as…
A: Right answer is $19,000
Q: On February 18, 2018, Union Corporation purchased $1,139,000 of IBM bonds. Union will hold the bonds…
A:
Q: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss…
A: 1.Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: SUKON Company acquired equity securities at the beginning of 2020. SUKON Company provided you the…
A: Carrying value of the investment on December 31, 2021 = Number of shares on December 31, 2021 x Fair…
Q: On July 1, 2021, Dreeben Company acquired P600,000 (face value), 10%, P1,000 bonds at 99 plus…
A: As Given in the question Dreeben Company purchased P 600,000 (face value) at 10%, P 1,000 bonds at…
Q: Bentley Company acquires Joslyn Company debt securities on Januart 1, 2020 for $15,000. Upon…
A: Securities available for sale indicate the purchase of equity stocks made by the company for resale…
Q: 1. On July 1, 2019, Hello Corporation acquired an investment at amortized cost in Screen Company's…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2019, Demeanor Company pure with face amount of P5,000,000 to be held as fir at…
A: The answer has been mentioned below.
Q: On January 1, 2019, Pat Archi Inc purchased marketable equity securities for P2,000,000. The…
A: The question is related to Financial Assets. It is given that the securities do not qualify as…
Q: On January 1, 2019, Weaver Company purchased as held-to-maturity debt securities $500,000 face value…
A: The term "debt securities" can refer to a range of financial products that contain a commitment from…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: On January 1, 2020, DEF Company purchased equity securities for P18,000,000. The entity paid the…
A: The fair value change on the financial instrument that is measured at FVOCI is an unrealized…
Q: On January 1, 2019, Apollo Corporation purchased 4-year P8,000,000, 10% bonds at face value. The…
A: The bond was sold on 31 December 2021, which means it had a one year remaining life before maturity.…
Q: On Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was…
A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts…
Q: 45 On January 1, 2019, an entity purchased equity investments held for trading (see attached image).…
A: Expenses - An expense is a cost associated with the production and sale of a product. In a firm,…
Q: On January 1, 2019, DB Company purchase 9% bonds in the face amount of P6,000,000. The bonds mature…
A: Unrealized gain on investments: A prospective profit that exists on paper as a consequence of…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Financial assets are recognized at their historical costs in initial measurement and the difference…
Q: On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for…
A: Bonds are defined the fixed-income debt instrument that is used to finance the business. It can be…
Q: In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated…
A: Answer: As per IFRS 9, Financial instruments, there are two different methods for classification of…
Q: ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Investment in FAFVTPL, FAFVTOCI, and FA@AC Your audit of the Baliuag Corporation disclosed that the…
A: You have posted a multiple-part question, So as per Bartleby policy only the first three parts will…
Q: On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity…
A: In the given case the equity shares are held for trading purposes.. Any gains or losses for a…
Q: S&L Financial buys and sells securities that it typically classifies as available-for-sale. On…
A: As the fair value of bond is smaller than the purchase price $2000 will be loss in 2018. Also as the…
Q: Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon…
A: The investment securities can be held as investment held for trading, investment held for sale, or…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Income statement is the financial statement that shows income and expenditure. It is also known as…
Q: Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence…
A: Solution: When acquistion did not result into significant influence over investee company,…
Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…
A:
Q: ry 1, 2020, the Pacita Corp equity securities for P2,000,000. ssion, taxes and other transacti…
A: Marketable securities are valued at fair value at the end of the accounting year . The difference…
Q: n january 1, 2021 m, Hubalde Company purchased trading equity investments which are irrevocably…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price…
A: Accounting for Equity securities: FVTNI Classified as Fair Value through net income ( FTVNI ) -…
Q: 9. On July 1,2020, Lean Compuny Band Company for P4,615000 to yiekd 10% per year to be held as…
A:
Q: On Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading…
A: For measurements under FVTOCI the transaction cost will be debited to profit or loss account…
Q: On May 1, 2019, Ed Company purchased a short-term P2.000.000 face value, 9% debt instruments for…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2020, FAMILY Company purchased equity investments held for trading. Market-12/31/2020…
A: Trading securities are defined as those short-term investments, made by the organization to gain…
Q: the required year-end adjusting entry for this investment is:
A: The purchase cost of shares is $45000 whereas the fair value at the end of the year is $42160. Hence…
Q: V. On December 31, 2021. Ogallala Associates owned the following securities, held as a long-term…
A: Journal entries are used by the companies, firms, NPO, etc. to keep a record of the transactions…
Q: In 2019, Edward Company purchased equity securities as a trading investment. For the year ended…
A: Workings:
Q: Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held…
A: Investment held for trading is the investment held with the intent of selling within a limited…
Q: In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated…
A: Recognized Gain - It is the amount when investment is sold and generate amount that is greater than…
Q: 5. In 2020, the entity purchased the following equity securities for the purpose of selling them in…
A: Equity Securities An instrument that represents a claim on a corporation's assets and profits and…
Q: Fair value December 31, 2020 Cost Aura Company ordinary Bora Company preference Cara Company bonds…
A: Journal entries in the book of Spark Company (2020) Date Particular Dr. Cr. 01.01.2020…
Q: on may 21 1020, an entity acquired P 1,600,000 9% bonds at 97 plus accrued interest.Interest bond is…
A: Interest is a fixed payment payable on the outstanding balance of the fixed income securities. Fixed…
Q: On January 3. 2019. Cullumber Company purchased for $s05.000 cash a 10% interest in Riverbed Corp.…
A: Here discuss about the accounting treatment of the Equity investment which are classified for the…
Q: On April 1, year 1, the entity purchased P200,000 face value, 9% Treasury Notes for P198,500,…
A: On April 1 of Year 1, Company purchased face value = P200000 Cost of purchase of 9% of Treasury…
Q: Abednego Company purchased equity investments held for trading on January 1, 2020. Purchase Price…
A: The securities which are held by the companies for trading purposes are to be recorded on the fair…
Q: 39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financial assets…
A: At every accounting period, all equity securities are revalued to find out their market value. Then…
Q: S&L Financial buys and sells securities which it classifies as available-for-sale. On December…
A: Answer: 2018: No Gain/Loss in earnings For Available for sale securities, unrealized holding gains…
What is the net adjustment to
What amount in OCI should be recognized in the statement of changes in equity on December 31,2020?
Step by step
Solved in 3 steps
- Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.
- Convertible Preferred Stock On January 2, 2019, Bray Corporation issues 900 shares of 100 par convertible preferred stock for 117 per share. On January 7, 2020, all the preferred shareholders convert their shares to common stock. Required: 1. Prepare the January 2, 2019, journal entry to record the issuance of the preferred stock. 2. Prepare the January 7, 2020, journal entry to record the conversion, assuming the preferred stock contract states that: a. each share of preferred stock is convertible into 7 shares of 10 par common stock b. each share of preferred stock is convertible into 12 shares of 10 par common stockDuring 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossRefer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
- Investment in Available-for-Sale Bonds The following information relates to Starr Companys investment in available-for-sale bonds for 2019: Required: 1. Prepare journal entries to record the previous information for 2019. Use the effective interest method and round all amounts to the nearest dollar. Assume that Starr prepares semiannual financial statements. 2. Show the items of income or loss from investment transactions that Starr reports for each 2019 semiannual income statement. 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to dispose of all investments with in one year of purchase.Held-to-Maturity Securities and Amortization of a Discount On January 1, 2019, Kelly Corporation acquired bonds with a face value of 500,000 for 483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity Required: Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the: 1. straight-line method of amortization 2. effective interest method of amortizationRefer to the information in RE 13-3. Assume that on December 31, 2019, Wolfpack received interest on the Todd Corporation bonds. Wolfpack uses the straight-line method to amortize premiums and discounts. Prepare the December 31 journal entry to record the receipt of the interest. On July 1, 2019, Wolfpack Corporation purchases securities which it intends to buy and sell frequently. These securities consisted of todd Corporation 10%, 5-year bonds with a face value of 20,000 which were purchased for 18,500. Prepare the july 1 journal entry to record the purchase of these trading securities.
- On January 1, 2019, Brewster Company issued 2,000 of its 5-year, 1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Brewster uses the effective interest method of amortization. On December 31, 2023, Brewster extinguished the 2,000 bonds early through acquisition in the open market for 1,980,000. On July 1, 2022, Brewster issued 5,000 of its 6-year, 1,000 face value, 10% convertible bonds dated July 1 at an effective annual interest rate (yield) of 12%. The bonds are convertible at the option of the investor into Brewsters common stock at a ratio of 10 shares of common stock for each bond. Brewster uses the effective interest method of amortization. On July 1, 2023, an investor in Brewsters convertible bonds tendered 1,500 bonds for conversion into 15,000 shares of Brewsters common stock, which had a market value of 105 per share at the date of the conversion. Required: 1. Using the information about Brewster, answer the following questions: a. Were the 11% bonds issued at par, at a discount, or at a premium? Why? b. Is the amount of interest expense for the 11% bonds using the effective interest method of amortization higher in the first or second year of the life of the bond issue? Why? 2. Using the information about Brewster, explain the following: a. How is a gain or loss on early extinguishment of debt determined? Does the early extinguishment of the 11% bonds result in a gain or loss? Why? b. How does Brewster report the early extinguishment of the 11% bonds on the 2023 income statement? 3. Based on the information provided about Brewster, answer the following questions: a. Does recording the conversion of the 10% convertible bonds into common stock under the book value method affect net income? What is the rationale for the book value method? b. Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income? What is the rationale for the market value method?on may 21 1020, an entity acquired P 1,600,000 9% bonds at 97 plus accrued interest.Interest bond is paayable semiannually on march 1 and september 1 and bonds mature on september 1, 2023. the entity intended to hold these bond until they mature. Due to an isolated events that is beyond the entity control, the entity sold bonds of 480,000 for 103 plus accrued interest on MAy 1, 2021. On July 1, 2022, bonds of 640,000 were exchanged for 90,000 ordinanry shares, to par value, qouted on the market on this date 8 per share. Interest was received on bonds to date of exchage. On september 1, 2023, remaining bonds were redeemed and accrued interest was received. use straight line method. compute for the total interest income for 2020.On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL: Security Purchase price Transaction costs Fair value, Dec. 31, 2021 A P1,000,000 P100,000 P1,500,000 B 2,000,000 200,000 2,400,000 C 4,000,000 400,000 4,700,000 On July 5, 2021, the entity sold Security C amounting to P5,200,000. Requirements: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss reported on the income statement on December…
