Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income

Q: The following selected transactions relate to investment activities of Ornamental Insulation…

A: As per US GAAPs, 1. Interest income as well as Profit/Loss on Sale of investments will be recorded…

Q: Cheyenne Corporation began operations on January 1, 2020 when $247,000 was invested by shareholders…

A: Given,   (a)   Dividend income   $          8,800   (b)   Unrealized holding loss   $…

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: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased…

A: Journal entries shows the recording of transactions during an accounting year and every transaction…

Q: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A:

Q: Turner Company purchased 40% of the outstanding stock of ICA Company for $10,000,000 on January 2,…

A:

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 1, 2020, Alexis Company purchased marketable equity securities to be held as "trading"…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…

A:

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: It is pertinent to note that equity securities held for trading are measured at fair value through…

Q: Ziek Corp. acquired a 30% interest in ZKI Corporation on December 31, 2020 for $2,159,000. During…

A: Investment refers to the assets which are acquired or invested in building the wealth and also save…

Q: Live Large Inc. had the following transactions involving non-strategic investments during 2020.…

A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into…

Q: On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment…

A: Date Account titles and Explanation Debit Credit  January 1, 2020 Investment in Montana…

Q: For items 5 and 6, please refer to the following information: On January 1, 2021, ABC Company…

A: When the investment is purchased , transaction cost is included in its total cost.

Q: On November 1, 2021, Romblon Company invested in P600,000 in equity securities representing 20,000…

A: When an asset or any security is sold, they are sold with the expectation to earn gain which can be…

Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…

A: Here discuss about the purchase and sale of share investment which are made through the fair value…

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: The details of two investments made by the company are as follows:   Investment  1 – Acquired on…

Q: During 2021, Lavida Loca Company purchased trading securities with the following cost and market…

A: Total cost of trading securities = 300,000 + 1,500,000 + 3,800,000 = 5,600,000 Total market value of…

Q: Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share…

A: Value of Shares=Number of Shares×Per share=2,000×₱150=₱300,000

Q: For the year ended December 31, 2019, WQA Company reported opening retained earnings of P1,850,000…

A:

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

A: Lallo will report the net income from investment using the cost method.

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: During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity…

A: Equity investment is the form of investment in the shares of the company to get returns in the form…

Q: Velasco Corporation should report cash equivalents in its December 31, 2019 statement of financial…

A: Cash and Cash equivalents:             This item is to be reported as a current asset on the balance…

Q: Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to…

A: Under fair value method of recording investment, net income includes only dividend amount received.…

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

A: Income from investment means dividend received by Lallo company paid by Vintar company.

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: The correct answer is given in the following steps for your reference

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: How should Allan allocate Sysinger’s total acquisition-date fair value (January 1, 2021) to the…

A:

Q: On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for…

A: Share in net income of 2021 = Net income x 15% = P20000 x 15% = P3000

Q: he entity sold 10,000 shares of B on January 5, 2022 for P150 per share. The market price per share…

A: In this case stock valued at the end of each year at the fair value and the difference is transfer…

Q: equity method to account for this investment

A: Since Jupiter Inc. acquired 25% in Saturn Co., the debit balance in the investment will include the…

Q: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased…

A: Prepare the journal to record from the purchase to the end of the year. Working Notes:

Q: Jon company owns two financial investments in the shares of listed companies. With the following…

A: The details of investment of a company  are as follows:  Investment  1 – Acquired on September 1,…

Q: 2020     Apr. 1   Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated…

A: 1. To Record the collection of term deposits and interest earned. (Jul 03, 2020) Journal Entry in…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: HHT Bhd has a portfolio of diversified investments. In 2020, the company made investments in two…

A: Classification of Financial Assets stipulated in MFRS 9 Classification of the financial assets…

Q: Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2,…

A: Given, Total Dividend paid=P600,000Total ordinary shares outstanding=1,000,000 ordinary shares

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: 2021     Feb. 16   Sold the remaining Blue Balloon shares at $27.00. Prepare journal entries  1.…

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Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

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: Lexington Co. has the following securities outstanding on December 31, 2020 (its first year of…

A:

Q: Presented below is information related to the purchases of common stock by Thomlin Company during…

A: Unrealized Investment Gain or Loss: Unrealized gain refers to a rise in the price of an item or…

Q: On January 1, 2018, BLEED Inc. acquired 10% interest in an investee for P3,000,000, The investment…

A: Investments held for trading purpose- Investments that are held for trading are measured at fair…

Q: What amount of unrealized gain or (loss) should be reported in the statement of comprehensive income…

A: The statement of the comprehensive income is the statement that records all the unrealized revenge,…

Q: Live Large Inc. had the following transactions involving non-strategic investments during 2020.…

A: Step2 in solution.

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary sha…

A: When shares for investment are purchased, they are recorded at the cost. At the end of every…

Q: The following selected transactions relate to investment activities of Ornamental Insulation…

A: Journal entry is recording of the business transactions into the books of accounts of the company…