. What amount should be debited to the investment account if the rights were not accounted for separately?

Q: Shell product decided to raise additional financing by issuing common stock. The company received…

A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…

Q: On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s…

A: On 15.06.2021, LABAN company owns shares of GANGDULO company = 20000 shares Cost of purchase =…

Q: The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is…

A: The objective of the question is to determine the correct accounting entry for Jarvis Corporation's…

Q: At the start of the year, Camille Company had 300,000 issued P100-par ordinary shares and 120,000…

A: Issue of Share Capital One of the main source of fund raised by the company to issue shares into the…

Q: The following information relates to Midas Ltd, a small but successful investment holding company.…

A: Here discuss about the details of the investment which are made in the equity for fair value through…

Q: Caramel Corporation has 5,000 shares of stock outstanding. In a qualifying stock redemption, Caramel…

A: Earnings and profits (E&P) measures the company's economic ability pertaining to payment of…

Q: Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had…

A: The share means the smallest unit of the company's ownership. The shares are issued by the company…

Q: The amount that was recorded as a realized gain or loss was

A: Realized gain occurs when an asset is sold at a higher price than the price at which the asset was…

Q: Emma Consulting had previously purchased 2,439 shares of treasury stock for $8 per share.  Emma then…

A: Solution: Cost of treasury stock sold = 935*$8 = $7,480

Q: A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are…

A: When a company helds securities as investment ,  there may be…

Q: On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary…

A: Lets understand the basics. When asset is purchased in exchange of shares then asset should be…

Q: Zaata Ltd decided to repurchase 500,000 of its ordinary shares under a buy-back scheme for $5.70 per…

A: Buy-back of shares: It is a corporate action, wherein the company repurchases its own shares from…

Q: On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The…

A: Unrealized gain or loss represents the change in the market value of the investment. For equity…

Q: ARIES Inc. had the following transactions in the ordinary shares of May Corporation: anuary 5 Bought…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: A piece of equipment is acquired by an entity by issuing 10,000 shares of 10 par ordinary shares.…

A: Cost of the equipment =List price - Trade discount - Cash discount where, Cash discount = (List…

Q: Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The…

A: If an investment is purchased then there are two methods to record the investments namely, the cost…

Q: How much is the unrealized gain(loss) that should be presented in the statement of comprehensive…

A: The PINK Company purchased 50,000 shares (5% ownership) of another Company on January 2, 2020. PINK…

Q: PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per…

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: The company issued for P1,000,000 cash, 1,000 shares of P200 par value Preference share and 2,000…

A: The value received in excess of par value is credited to share premium account.

Q: for the COST OF STOCK or SHARE RIGHTS

A: Required: Compute for the Cost of Stock or Share  Rights allocated from the investment.

Q: Kenny Limited's issued share capital is £125,000 made up of 250,000 ordinary shares of £0.50 each.…

A: Number of Share = n = 250,000Profit for the Year = p = £70,000

Q: Vivienne Company owns 15,000 of the 100,000 ordinary shares of Rain Corporation. The investment is…

A: The calculation of cash dividend will be based on the number of eligible shares that are receivable…

Q: On July 1, 2002, Orange Company issued rights to stockholders to subscribe to additional shares of…

A: In the following question we have to identify number of shares issued as a result of right issue and…

Q: WW Corp. resells 500 shares of its own common stock for $22 per share. WW had acquired these shares…

A: When a company issue shares in the market and due to any reasons company has the option to…

Q: ABC Co. is authorized to issue 400,000 of P 10 par value ordinary shares and 300,000 of P 15 par…

A: Ordinary Share premium is the difference between par value of company's equity shares and total…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Investment transactions in 20X0 : On March 20, Purchased ordinary shares of XYZ Co. = 1000 shares…

Q: 1. Athletic Accessories has the following transactions related to investments in common stock. How…

A: As per dual concept of accounting, every transaction has dual impact on the books of…

Q: ABC Co holds 20,000 shares of XYZ Inc as investment in equity security measured at FVOCI. The…

A: The right issues receive would be a part of investment and recognize at fair value at the receiving…

Q: TRUE OR FALSE   Fairy Company issued 2,500 ordinary shares with par value of P10 per share for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a…

A: Preference shares are those shares whose holders are having priority over the common ordinary shares…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.