Year Cost Market Value Unrealized Gain / (Loss)2020GKKB P25,250 P23,350 (P1,900)ABC 32,450 33,950 1,5002021GKKB P25,250 P24,950 (P300)ABC 32,450 32,650 200 Question 7: The investment in stocks account is overstated or understated by? (Use negative sign if overstated) Problem 4 - PLM Company (PART 2)Continued..Investments in Stocks - This portfolio is composed of GKKB Companyshares (GanyankabakatigasBash) and ABC Company shares. The shareswere not held for trading and management has elected to designate theinvestments at fair value through other comprehensive income.DateDebit CreditAccountMay 3,2020Investment in GKKBCompanyBroker's fee25,2501,000Cash26,250To record theacquisition of GKKBshares and its relatedtransaction costInvestment in ABCCompany32,450Cash32,450 To record theacquisition of ABCshares, acquired atP32.45 per shareDecember Unrealized Gain / (Loss)40031, 2020on market changesInvestment in ABCCompany1,500Investment in GKKB1,900CompanyTo record the marketvalue adjustment for2020May 28,2021Investment in ABCCompany5,000Dividend income5,000Received 100 shares ofABC Company in lieu ofcash dividends of P5per share. ABC shareswere seling for P42 pershare on this date.December Unrealized Gain / (Loss)10031, 2021on market changesInvestment in ABCCompany300Investment in GKKB200CompanyTo record the marketvalue adjustment for2021Audit Notes:• The changes in fair value were appropriately recognized in OCI.• The jourmal entries pertaining to the market value adjustments wasprepared by the accountant in accordance with the followinginformation:

Jounral Entry Here provide the journal entries which are made the investment in the different…

Year Cost Market Value Unrealized Gain / (Loss) 2020 GKKB P25,250 P23,350 (P1,900) ABC 32,450 33,950 1,500 2021 GKKB P25,250 P24,950 (P300) ABC 32,450 32,650 200 Question 7: The investment in stocks account is overstated or understated by? (Use negative sign if overstated)

Year Cost Market Value Unrealized Gain / (Loss) 2020 GKKB P25,250 P23,350 (P1,900) ABC 32,450 33,950 1,500 2021 GKKB P25,250 P24,950 (P300) ABC 32,450 32,650 200 Question 7: The investment in stocks account is overstated or understated by? (Use negative sign if overstated)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 4PROB

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