On July 10, 2021, Romantic Co. acquired 25,000 shares of Baboy Co. for P200,000. Romantic Co does not have significant influence over Baboy Co. The entity also spent additional P15,000 transaction cost. Romantic Co. entity made an irrevocable election of the instrument to be classified as FVOCI. On October 15, 2021, the Romantic Co. sold 15,000 shares for P10.5/share. At year- end, Baboy Co.'s shares were selling at P12 per share. How much is the total amount to be recognized as other comprehensive income in the statement of comprehensive income for the year ?

Q: On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: On August 1, 2020, Swifty Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: On January 1, 2021, April Company purchased 40% of the outstanding shares of another entity for…

A: Here April  company purchased 40% shares of another company which is…

Q: On January 1, 2020, Sprite Company acquired 25% of the ordinary shares that carry voting rights at a…

A: Carrying Value of Equity Investment is company investment value in other businesses by adjusting the…

Q: During the year 2019, Mice Company acquired 10,000 ordinary shares of Easy Company for P250,000 plus…

A: If investment in equity shares are neither intended for trading nor such investment gives investor…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: The consolidated income is determined by combining the incomes of both parent and subsidiary’s…

Q: On July 1, 2021, Mickaella Company, an SME, acquired 20% of the outstanding ordinary shares of…

A: It is the method used to treat investments in associate companies. This method is used when an…

Q: What amount should Justine Company report as investment in associate on December 31, 2020?

A: Justine Company, an SME, bought 20% of another entity’s ordinary shares on January 1, 2020 for…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The calculation of holding gain that should David report in equity on December 31 is shown hereunder…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp…

Q: How much was the gain or loss on sale of investment on January 1, 2020? a. P1,575 loss b. P1,575…

A: Company can control another company by having the control which is significant to control and…

Q: On August 31, 2021, Nutcraker Corp. issued 100,000 shares of its P20 par value ordinary stock for…

A: The question is related to Business combination. The Nutcracker Crop. Issued 100000 share par value…

Q: On January 1, 2021, Sledge had common stock of $190,000 and retained earnings of $330,000. During…

A: The equity method is a method used by a company to record the profits earned by its investment in…

Q: During the year 2019, Nice Company acquired 10,000 ordinary shares of Easy Company for P250,000 plus…

A: Unrealized gain: It implies to an increase in the fixed asset's value that is held by an investor…

Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y…

A: Goodwill is calculated when Purchase consideration paid to acquire a company (acquiree) is greater…

Q: On January 1, 2021, Sledge had common stock of $280,000 and retained earnings of $420,000. During…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: On January 1, 2021, April Company purchased 40% of the outstanding shares of another entity for…

A: Shares- The ownership of a firm is divided into several minor sections. These components are…

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: On January 1, 2021, Mojito Corporation purchased 25% (20,000 shares) of the outstanding stock of…

A: When a parent company holds 20-50% in another company then it is known as an associate company.

Q: Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share…

A: Value of Shares=Number of Shares×Per share=2,000×₱150=₱300,000

Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…

A: Answer are as follows:

Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…

A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…

Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: The investment income to be reported is equal to the total amount received from the company as a…

Q: On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp.'s ordinary shares and…

A: Held for Trading security means a debt or equity investment that investors purchase with an…

Q: On June 30, 2020, Pearl Co. acquired 80% of the outstanding shares of Scott Co. for P3,125,000. On…

A: The differential between the amount paid and the fair value of the assets bought and liabilities…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $342,000…

A: A business combination is a transaction in which a buyer takes over control of another company (the…

Q: On January 1, 2021, Sledge had common stock of $240,000 and retained earnings of $380,000. During…

A: Non Controlling Interest - It is type of interest in the company where shareholder owns less than…

Q: On September 1, 2019, Eli Company purchased 35% of the outstanding ordinary shares of Long…

A:

Q: On January 1, 2019, ABC Inc., paid P700,000 for 10,000 shares of XYZ’s Company’s voting ordinary…

A: Given, Dates Particulars   Amount (in P) 1/1/2019 ABC Inc. paid 10000 for the company's voting…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Consolidated cash balance as of the date of acquisition = Cash balance of both companies before…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: Consolidated financial statement includes the components of financial statements to be prepared for…

Q: At the beginning of 2021, Nobela Corporation bought 15% ownership stake in Joseph Corporation for…

A: In the investment of associate, we valued the investment value at the end of each year by the equity…

Q: On January 1, 2021, Foster Corporation issues 1,200,000 shares of Its common stock for all of Evan…

A: In  case one company overtake the assets and liabilities of another company , then accounting for…

Q: After all closing entries are made, Tremen's "Investment in Delany Company" account would have a…

A: Given information is: On July 1, 2019, Tremen Corporation acquired 40% of the shares of Delany…

Q: On April 1, 2019, BBB Company purchased 40% of the outstanding ordinary shares of Clarke Company for…

A: Note: It is assume that company preparing their financial account according calendar year.

Q: On August 1, 2020, Whispering Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: On January 1, 2021, Sledge had common stock of $210,000 and retained earnings of $350,000. During…

A: Solution  Net income means income after deducting costs , allowances and taxes.

Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: GIVEN     On January 2, 2021. Normal Inc. acquired 15% interest in Laco Co. by paying P1.500.000 for…

Q: the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…

A: A business combination is a transaction in which a buyer takes over control of another company (the…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: The share premium account balance cannot be utilized for distributing dividends but can be utilized…

Q: . During the year 2019, Active Company acquired 10,000 ordinary shares of Passive Company P250,000…

A: Cost of equity investment = P250000 + P 5000 = P255000 Market value as on Decemeber 31, 2019 =…

Q: On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common…

A: Consolidation of companies is the combination of two or more businesses into a single company.

Q: On August 1, 2020, Oriole Corporation purchased 20% of the outstanding voting shares in WLT…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: On January 1, 2014, Malibu Corporation paid $700,000 to purchase 90% of outstanding stock of Balam…

A: Calculation of fair value of Balam corporation = Amount paid for the acquisition / % share acquired

Q: On January 1, 2018, the Moody Company entered into a transaction for 100% of the outstanding common…

A: Consolidate amount of land at acquisition = land amount of Moody + land amount of Osorio…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: 1. Cash to be presented on the consolidated statement of financial position as of the date of…

Q: On January 1, 2018, Fisher Corporation paid $2,290,000 for 35 percent of the outstanding voting…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a…

A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

Q: How much unrealized holding gain should Lover report in profit or loss for the year 2022?

A: The calculation of unrealised holding gain that should be reported in profit or loss for the year…