ount of P1,200. C -, and Neighborho alues per unit are 0x2. respectively. F

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...
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2. On December 29, 20x1, Neighborhood Co. sells 1,000 units of an
investment through a broker at P1.00 per unit, the quoted price on this date.
The investment has a carrying amount of P1,200. Ownership over the
financial asset transfers to the buyer, and Neighborhood collects the sale
price, on January 3, 20x2. The fair values per unit are P1.75 and P1.50 on
December 31, 20x1 and January 3, 20x2, respectively.
Requirements: Provide the journal entries under the (1) trade date
accounting and (2) settlement date accounting assuming the investment was
classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
Transcribed Image Text:2. On December 29, 20x1, Neighborhood Co. sells 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. The investment has a carrying amount of P1,200. Ownership over the financial asset transfers to the buyer, and Neighborhood collects the sale price, on January 3, 20x2. The fair values per unit are P1.75 and P1.50 on December 31, 20x1 and January 3, 20x2, respectively. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment was classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
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