4. How much is the gain (loss) on the sale of Mad Company ordinary shares on July 18, 2023?A. P4,500B. P3,000C. P1,500D. P05. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold?A. P11,100B. P5,500C. P5,100D. P1,500 Jam Company bought the ordinary shares of Mad Company designated as equity securities atfair value through other comprehensive income, as follows:June 20,2019-1,000 shares for P 101,600November 5,2019-3,000 shares at P 104 per shareOn January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 pershare.Market values of Mad Company ordinary shares are as follows:December 31,2019-P 106.70 per shareDecember 31,2020-P 96 per share

Valuation of Investment held for sales: Investment in the equity share of other companies which are…

sale of Mad Company ordinary shares on July 18, 2023? A. P4,500 B. P3,000 C. P1,500 D. P0 5. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold? A. P11,100 B. P5,500

sale of Mad Company ordinary shares on July 18, 2023? A. P4,500 B. P3,000 C. P1,500 D. P0 5. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold? A. P11,100 B. P5,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 23E

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Question

4. How much is the gain (loss) on the sale of Mad Company ordinary shares on July 18, 2023?

A. P4,500
B. P3,000
C. P1,500
D. P0

5. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold?

A. P11,100
B. P5,500
C. P5,100
D. P1,500

Jam Company bought the ordinary shares of Mad Company designated as equity securities at
fair value through other comprehensive income, as follows:
June 20,2019-1,000 shares for P 101,600
November 5,2019-3,000 shares at P 104 per share
On January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June
14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 per
share.
Market values of Mad Company ordinary shares are as follows:
December 31,2019-P 106.70 per share
December 31,2020-P 96 per share

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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