Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. 20x2

Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. 20x2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, 20x1 Acquired 12,000 shares of Buffet Corp. at P3.00 per share. Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, 20x2 Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. Prepare the journal entries assuming Elements Co. irrevocably elected to measure the investment at FVOCI. Elements Co. does not use a fair value adjustment account.
FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, 20x1 Acquired 12,000 shares of Buffet Corp. at P3.00 per share. Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. 20x2 Prepare the journal entries assuming the investment is classified as held for trading securities and Elements Co. does not use adjustment account. fair value
(44). Subject:- Accounting On March 1, Emma Corp purchased 1,900 (or 11%) of the common shares of Christine Corp for $40 per share. Brokerage fees of $1,100 were incurred on the purchase. On December 1, Christine Corp declared and paid $30,000 of dividends. On December 31, shares of Christine Corp were trading at $62 per share. The investment was recorded using FVTOCI. What amount would be recorded to the "Investment in Christine Corp" account on March 1?
1. ABC Co purchases 10,000 XYZ Inc., shares for P100 per share on April 9, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Requirement: Prepare Journal Entries on April 9 and April 30, 20x1. 2. ABC Co purchases 10,000 XYZ Inc. shares for P100 per share on April 27, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Prepare Journal Entries on April 9 and April 30, 20x1. Requirement: Prepare Journal Entries on April 27 and April 30, 20x1. 3. ABC Co holds 10,000 shares of XYZ Inc. as Investment in equity securities. On April 1, 20x1, ABC Co receives land with accost of P1,000,000 and fair value of P1,300,000 as property dividend. Requirement: Prepare Journal Entries on April1. 4.…
On May 1, Republic Corporation purchased 400 shares of stock for P114 per share and held it as FVTPL financial assets. The price decreased to P106 per share on August 1 and then increased to P122 on December 31. During the year, the company received dividends of P3.50 per share. At what amount should the investment be valued in the December 31 balance sheet?
Nasser Inc. had the following transactions pertaining to stock investments. Jan. 1 Purchased 3,500 shares of Eshaq Corporation common stock (5%) for $212,625 cash, plus brokerage fees of $875. July 1 Received cash dividends of $4 per share on Eshaq common stock. Nov. 1 Sold 500 shares of Eshaq common stock for $32,100, less brokerage fees of $100. Dec. 1 Received cash dividends of $4 per share on Eshaq common stock. Instructions Journalize the transactions.
. Journal entries using the Cost and Equity Method of accounting for the for the following transtation : On 1/2/18 the Xylo Corp. purchased 8000 shares of ABC Co. Common Stock At $20 per share. ABC Co. has 40000 shares of Common Stock outstanding. On 10/31/18 Xylo Corp. received a $1.50 per share dividend from ABC Co. On 12/30/18 ABC Company announced earnings of for the year at $200000. Prepare the calculations and Journal Entries, in good form, if the Investment is classified as Available for sale Part A. The Cost Method. Part B The Equity Method of accounting is applicable.
Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: Net income reported for the year by the associate was P2,500,000. Adjust net income with data from the following: Dividends declared by X is P2,000,000. It has 90,000 6%, P100-par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous year.
AL - Kamel Supplies Company purchased 1200 shares of Bahwan Group shares at OR30 per share. Brokerage fee of OR700. Two months later, the shares were sold for OR32 per share. The brokerage fee on the sale was OR800. The journal entry for purchase is Investment in G Motors common shares ...... 36,700 36,700 Cash Select one 1. True 2. False
Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.65 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Ayayai sold the Sigma shares for $34.60 per share. Prepare Ayayai Corporation’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit September 8 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare Ayayai Corporation’s journal entry to record the dividends received. (Credit…
Diann Ltd. had the following transactions pertaining to share investments. Feb. 1 Purchased 600 ordinary shares of Ronn (2%) for $6,200. July 1 Received cash dividends of $1 per share on Ronn ordinary shares. Sept. 1 Sold 300 ordinary shares of Ronn for $4,300. Dec. 1 Received cash dividends of $1 per share on Ronn ordinary shares. Instructions: a. Journalize the transactions. b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.
The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased 2,300 shares of Delew Company’s common stock for a price of $49.85 per share plus a brokerage commission of $345. Delew Company has 260,000 shares of common stock outstanding. July 8. Received a quarterly dividend of $0.25 per share on the Delew Company investment. Sept. 10. Sold 1,500 shares for a price of $45 per share less a brokerage commission of $190. Dec. 31. At the end of the accounting period, the fair value of the remaining 800 shares of Delew Company’s stock was $49.50 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar. Apr. 10 - Purchase Investments-Delew Company Stock Cash July 8 - Dividend Cash Dividend Revenue Sept. 10 - Sale Cash Loss on Sale of Investments…