PLEASE ANSWER THIS QUESTION ASAP. THANK YOU SO MUCH. In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following investment in Ordinary shares and dividend income accounts were presented to you:
PLEASE ANSWER THIS QUESTION ASAP. THANK YOU SO MUCH.
In connection with your audit of the financial statements of the Pin Shop Company for the year 2020, the following investment in Ordinary shares and dividend income accounts were presented to you:
Investment in ordinary shares
Date Description Ref. Debit Credit
01/15 10,000 O/S, par value P75, SPIKES CO. VR-18 585,000
04/30 5,000 shares SPIKES Co. received as share div. CJ-7 375,000
05/20 Sold 5,000 shares @ P37.5 CR-21 187,500
12/10 Sold 2,000 shares @ P90 CR-S2 180,000
Dividend Income
Date Description Ref. Debit Credit
04/30 Share Dividend SJ-7 375,000
11/30 SPIKES Co. Ordinary CR-22 75,000
The following information was obtained during your examination:
- From independent sources, you determine the following dividend information:
Type of Dividend Date Declared Date of Record Date of Payment Rate
Share 03/15/20 04/01/20 04/30/20 50%
Cash 11/01/20 11/15/20 11/28/3 P7.5/ share
Cash 12/01/20 12/15/20 01/02/21 20%
- Closing market quotation as December 31, 2020.
Bid Ask
SPIKES Co. Ordinary 20-5/8 24-3/4
QUESTIONS:
Based on the above and the result of your audit, answer the following:
- How much is the gain (loss) on May 20 sale?
- How much is the gain on December 10 sale?
- How much is the total dividend income for the year?
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