No. 18 Silahis Trading made investments in non-trading equitysecurities. The cumulative “Holding Gain or Loss" account hasa debit balance of P12,900 at December 31, Year 1. An analysisof the investments on December 31, Year 1 showed the following:No. of Sharesor Face Value600 shares225 sharesFair ValueAsia Textile ordinaryS-Mart, Inc. ordinaryRJ Company ordinary 2,000 sharesCostP307,500 P270,00076,500269,500P653,500 P640,60090,000280,600On July 1, Year 2, the shares of S-Mart were sold for P70,000.The balance of the equity pertaining to these shares wastransferred to the retained earnings account.On December 31, Year 2, Asia Textile shares were quoted atP440 per share; RJ shares were quoted at P138 per share.How much is the required debit to other comprehensive incomeaccount at the end of Year 2 to bring the investment account toits correct valuation?P43,500P37,000Р30,600P10,600а.b.С.d.

Answer - Calculation of amount required to debit to other comprehensive income account at the end…

Answered: Silahis Trading made investments in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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These account balances at December 31 relate to Sportaid Inc.: Accounts Payable... Accounts Receivable. Common Shares... Bonds Payable ... What is the total share capital for Sportaid Inc.? OA. $694,445 OB. $701,345 C. $753,800 D. $682,000 E. None of the above $ 51,700 Preferred Shares, $0.01, 81,350 890,000 shares issued 593,000 Retained Earnings. . 3,400 Notes Receivable .. 89,000 71,800 12,500
Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
E16.4 Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7,200 cash. July 1 Received cash dividends of $1 per share on Wade common stock. Sept. 1 Sold 300 shares of Wade common stock for $4,300. Dec. 1 Received cash dividends of $1 per share on Wade common stock. Instructions: a. Journalize the transactions. b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.
The equity section of Whispering Inc. at January 1, 2022, was as follows. Share capital-ordinary $390,000 Accumulated other comprehensive income Unrealized holding gain on equity securities designated at fair value through other comprehensive income 65,000 Retained earnings 26,000 During the year, the company had the following transactions. 1. Issued 13,000 shares at $3 per share. 2. Dividends of $12.200 were declared and paid. 3. Net income for the year was $130,000. Unrealized holding loss of $6,500 occurred on its equity securities designated at fair value through other comprehensive 4. income. Prepare a statement of changes in equity for Whispering Inc. WHISPERING INC.
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On 5 March 20X7, Marchant Ltd issued 200,000 5% irredeemable GHS 1 preference shares. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Marchant Ltd’s financial statements for the year ended 31 March 20X7? Shares Dividend A Non-current liabilities Income statement B Non-current liabilities Statement of changes in equity C Equity Income statement D Equity Statement of changes in equity
The Investments and Dividends Income accounts of Babe Time Company are shown below: Trading Securities Date Description Ref. Debit Credit 06/22/14 5,000 ordinary shares, par value P100, Bebe Co. CD – 28 520,000 12/31/14 Adjustment to fair value 80,000 05/31/15 500 shares Bebe Co. received as bonus issue GJ – 10 12,000 07/10/15 Sold 1,000 shares @ P130 net of transaction cost CR – 21 130,000 12/04/15 Sold 1,000 shares @ P140 CR – 40 140,000 Dividend Income Date Description Ref. Debit Credit 05/31/15 Bonus issue (stock dividend) GJ – 10 12,000 08/01/15 Cash dividend on Bebe Co ordinary shares CR – 22 22,500 The following information was obtained during your examination: The December 31, 2014 statement of financial position of Babe time Company showed, among current assets, Trading Securities of P600,000. You obtained the following…
The Investments and Dividends Income accounts of Babe Time Company are shown below: Trading Securities Date Description Ref. Debit Credit 06/22/14 5,000 ordinary shares, par value P100, Bebe Co. CD – 28 520,000 12/31/14 Adjustment to fair value 80,000 05/31/15 500 shares Bebe Co. received as bonus issue GJ – 10 12,000 07/10/15 Sold 1,000 shares @ P130 net of transaction cost CR – 21 130,000 12/04/15 Sold 1,000 shares @ P140 CR – 40 140,000 Dividend Income Date Description Ref. Debit Credit 05/31/15 Bonus issue (stock dividend) GJ – 10 12,000 08/01/15 Cash dividend on Bebe Co ordinary shares CR – 22 22,500 The following information was obtained during your examination: The December 31, 2014 statement of financial position of Babe time Company showed, among current assets, Trading Securities of P600,000. You obtained the following…
The dates of importance in connection with a cash dividend of P35,000 on acorporation's ordinary shares are Jan. 2, Jan. 22, and Feb. 1. Required:Journalize the entries required on each date.
XYZ Company declared a 2% stock dividend on common stock ($5 par). (Pretend there are 100,000 shares of common stock outstanding and that the current market value of a share of common stock on that date was $7.) Journalize this transaction. DATE Debit Credit X/X XYZ Company distributed the stock dividends from (h). Journalize this transaction. DATE Debit Credit X/X
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: 1 Common stock, $47 par $3,073,800.00 2 Paid-In Capital from Sale of Treasury Stock 119,000.00 3 Paid-In Capital in Excess of Par-Common Stock 261,600.00 4 Retained Earnings 19,185,100.00 5 Treasury Stock 326,800.00 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 8,600 shares have been reacquired. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Accounts and Amount Descriptions Common stock dividends Common stock, $47 par; 80,000 shares authorized, 65,400 issued Excess over par From sale of treasury stock…
On 3 October 20X6, Corbin Ltd issued 100,000 5% redeemable GHS 1 preference shares. These shares are redeemable on 3 October 20Y1. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Corbin Ltd’s financial statements for the year ended 31 December 20X6? Shares Dividend A Non-current liability Income statement B Non-current liabilities Statement of changes in equity C Equity Income statement D Equity Statement of changes in equity

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