On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment represents a 16% interest in Mayson Ltd. Clarke Inc. has classified this investment as FVTOCI. On December 31, 2020, Mayson Ltd paid a $35,000 dividend to its shareholders. On April 30, 2021, Mayson Ltd's shares were valued at $30 per share, and Mayson Ltd. reported a net loss of $27,000 for the year. On June 15, 2021, Clarke Inc sold the shares for $37,000. Both Clarke Inc and Mayson Ltd have April 30, 2021, year-ends.

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

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 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: rgin Inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to…

A: In order to find the amount of equity income that Bargin Inc should recognize in 2021 we should…

Q: The following investment-related transactions were completed by LackyCorp. during 2020 - Purchased…

A: As per IFRS 9, Financial instruments, The financial asset classified as FVTOCI will be initially…

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 January 4, 2021, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company…

A: 1) Journal entries:

Q: The adjusting entry on December 31, 2021 would

A: Fair value of shares are also known as market value. They are the value that will be received if…

Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ…

A: Solution: As shares are expected to be sold with in a year, therefore investment should be…

Q: On January 4, 2021, Runyan Bakery paid $340 million for 10 million shares of Lavery Labeling Company…

A: Investment accounts consist of the shares in which the company has invested its money and holds some…

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, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint…

A: A statement of financial position is a statement that is used to report all the assets and…

Q: On December 31, 2020, Hotel Company held 1,000 ordinary shares of Regent Company in its portfolio of…

A: On 31.12.2020, Hotel company held ordinary shares of Regent company = 1000 shares Cost per share =…

Q: de Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of…

A: Tan Beda acquired 10% voting shares in Taint Dude .  10% is very low amount for controlling…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

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 December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: FVOCI method accounts fair value adjustment through OCI.

Q: Jackson Inc. purchased 30,000 shares of common stock of the Pixel Corporation $10 per share on…

A: calculation of revenue from investment and investment shown in balance sheet are as follows

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: Realized Gain on Sale:- It is a result of the selling of assets at a price higher than the original…

Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

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: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is

A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000.…

A: Formula: Income from the investment = Total dividends paid x Percentage of holding shares

Q: he shares had fair value of P110 per share.   July 1, 2022, Tan Beda Company purchased additional…

A: Tan Beda acquired 10% voting shares in Taint Dude .  10% is very low amount for controlling…

Q: Milk Tea Company bought 1,000 shares of Macha Corporation as equity investments on January 10, 2022…

A: The company makes several investments to earn more income. When a company purchases the shares of…

Q: Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1,…

A: 1) journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise…

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

A: Here we can see that ping corporation has purchased 10,000 shares out of 50,000 shares.  Therefore…

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 31, 2020, Hotel Company held 1,000 ordinary shares of Regent Company in its portfolio of…

A: Adjusting entry refers to the type of journal entry which is issued in a company's general ledger at…

Q: kholders' equity on that date. On April 1, 2021, Lapwing sold 20% interest (one-fourth of its…

A: Compare the cash received to the item's carrying value to determine if you earned a profit or a loss…

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: A realized gain refers to the difference between the sales value and original purchase value.

Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: Fair value through OCI methods accounts the fair value adjustment through OCI.

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Income from investment reported in income statement for the year ended December 31, 2020 = Total…

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: 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 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 January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…

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: Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the…

A: Under equity method  for the investment, the investor records the investees dividend and net income…

Q: Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Investment at fair value = no. of shares x  fair value per share = 49,800 shares x $29 per share =…

Q: On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200.…

A: Revenue for 2020 (Net income x 30%) $ 136,800     Balance in investment account:…

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000.…

A: Introduction:- On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares…

Q: On January 1, 2021, Point, Inc. purchased 10% of lona Co.'s common stock. Point purchased additional…

A: Answer -   The amount of investment income to be reported in the year 1 income statement - When an…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.