ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 9, Problem 9.1.4E
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1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment:
Number of
Cost of
Total
Company
Shares
Share
$20
Cost
$ 8,000
24,000
600 ,7ב
400
2,000
800
B
12
22
These securities are classified as available for sale.
Required:
a. Prepare the journal entry to record the acquisition of the stock.
b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal
entry that would be used by Castle to record the dividend receipt.
c. On December 31, 2020, the market values per share were:
Company
Market Value
A
$22
B
12
20
Prepare any journal entry or entries necessary to record these changes in market value.
d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare
the journal entry to record the sale.
Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the
alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction
costs of the purchase were $400.
At 31 December 20x0, the shares are trading at $5.0 each.
a. What is the carrying balance of this financial asset shown on statement of financial position
as at 31 December 20X0?
b. What is the gain to be recognised on these shares for the year ended 31 December 20X0?
Where to record this gain in statement of profit or loss and other comprehensive?
c. Assume that these shares were held for sales, what is the initial measurement of this
financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or
loss and other comprehensive income at the year ended 20X0?
Accounting for Stock Split or Share Split
On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at P100,000 plus brokerage expense of P10,000. On February 14, 2021, AKO Company ordinary share was split on a 4-for-2 basis. The fair value at December 21, 2021 amounted to P20 per share.
Compute for the total number of shares at the end of the year.
Compute for the unrealized gain or (loss) to be presented in the other comprehensive income for the current year.
Prepare all the necessary journal entries.
Chapter 9 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - Prob. 9.11QCh. 9 - Prob. 9.12QCh. 9 - Prob. 9.13QCh. 9 - Prob. 9.14QCh. 9 - Prob. 9.15QCh. 9 - Prob. 9.16QCh. 9 - Prob. 9.1CCh. 9 - Prob. 9.2CCh. 9 - Prob. 9.3CCh. 9 - Prob. 9.4CCh. 9 - Prob. 9.5CCh. 9 - Prob. 9.1.1ECh. 9 - Prob. 9.1.2ECh. 9 - Prob. 9.1.3ECh. 9 - Prob. 9.1.4ECh. 9 - Prob. 9.2.1ECh. 9 - Prob. 9.2.2ECh. 9 - Prob. 9.2.3ECh. 9 - Prob. 9.2.4ECh. 9 - Prob. 9.2.5ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Subsidiary Stock Dividend Stake Company reported...Ch. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17.1PCh. 9 - Prob. 9.17.2PCh. 9 - Prob. 9.17.3PCh. 9 - Prob. 9.17.4PCh. 9 - Prob. 9.17.5PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26PCh. 9 - Prob. 9.27P
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