On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s stocks. During the same period, GANGDULO Company issued stock rights to existing shareholders. LABAN received 20,000 stock rights entitling him to purchase 5,000 new shares at P54. The ordinary share was trading ex-right at P54 a share and the rights had a market value of P6 per right. On July 1, 2021, LABAN exercised all the stock rights. The share is quoted right on at P65. Prepare all the necessary entries assuming the shares are: a. FA at FVPL b. FA at FVOCI

Q: On July 1, 2021, Focus Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: The profit made from assets including property and investment securities is known as investment…

Q: On January 1, 2021, Lourdes Company purchased 10,000 ordinary shares of LTS Corporation, a large,…

A: Solution Given Number of share purchased 10000 LTS distributed 20% bonus issue Par…

Q: Pharoah Company owns 3200 of the 10000 outstanding shares of Sheridan Corporation common stock.…

A: % of shares = No. of shares hold / Total outstanding shares of Sheridan Corporation = 3200/10000 =…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…

A: Note: There will ve no change in paid-up capital and additional paid-in capital balance due to…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

A: a) calculation of dividend income - SIKAP owns 10000 FVOCI shares which represent 10% of the total…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…

Q: On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as…

A: The shares can be issued by companies to pay off the expenses incurred or to acquire the fixed…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: On July 1. 2021, Funk Company has 400.000 shares of P25 par ordinary outstanding and the market…

A: Cost per treasury stock = Total costs / no. of treasury stock = P1650000/(50000*5) shares = P6.6 per…

Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…

A: No. of shares issued after reverse stock split = No. of  common stock outstanding x reverse stock…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 shares acquired at a cost of P120,000 classified…

A: The dividend income is recognized in the profit and loss account if it is declared by the…

Q: On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be…

A: Right shares are the shares issued after original issue to the existing shareholder to purchase more…

Q: AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10…

A: Stockholders Equity (often recognized as Stakeholders Equity) seems to be a balance-sheet statement…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: Lets understand the basics. When one entity purchase more than 20% of the share and less than 50% of…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Share split in the business is one in which one share of the company is split or broken into…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: BOY Co. acquired 50,000 ordinary shares of GIRL Co. on September 30, 2019 for P8,250,000. On October…

A: 1. Details of GIRLS Co. shares held by BOYS Co. before and after the share split. Date Cost of…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…

A: 1. Total No. of shares issued = 40,000 shares   Value of Shares = 40,000 Shares x P100 = P4000,000…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Balance in ordinary shares before split=Number of shares×Par value=400,000×P25=P 10,000,000

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…

Q: On July 1, 2021, Luke Corp. has 200,000 shares of P100 par common stock outstanding and the market…

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

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

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: A journal entry means the record the all business transaction of the company during the year for…

Q: Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200…

A: Share premium  is additional  amount  received  in excess of par on issue of stock

Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…

A: As per IFRS 9, Financial instruments, The financial assets measured at fair value through profit and…

Q: On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the…

A: Answer: Jan 1 2020: 15000 shares with cost of P1,400,000 Dec 31,2020: 15000 shares with fair market…

Q: On January 1, 2021, the Swiss Company purchased 20,000 ordinary shares at P100 per share to be…

A: Right offers are the offers given after original issue to the current investor to buy a greater…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…

A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…

Q: On December 20, 2018, Ball Corporation purchased 30,000 shares of Pencil Company's shares at P100…

A: Trading securities are the securities in which the entity invests and held them for selling in the…

Q: On January 1, 2020, Alpha Aviation issues 105,000 shares of stock. Shortly thereafter, Delta Tech…

A: Dividend refers to the profit distribution to its shareholders and when the business earns the…

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On February 1,2020, Neversaynever Corporation declared a bonus issue entitling its shareholders to…

A: Bonus shares are the shares which are issued to the existing shareholders free of charge. These are…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…

A: Gain = Sale value of shares sold - Purchase value of shares purchased

Q: On December 15, 2021, Blue Company paid $100,000 for 8,0000 shares of Marble Company common stock.…

A: For the purpose of calculating investment by one company in another company the fair value of the…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: Lea Inc, owned 900,000 shares of Mia Corporation stock. On December 31, 2010, when Lea's account…

A: Answer with all workings are as follows:

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: n 2021, wow company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated…

A: Company means a form of business where the share holder invest money in business in form of shares…