On January 1, 2020, Jam Company reported as long-terminvestments the following unquoted equity shares:aratDale Company, 5,000 ordinary shares (1% interest)Ever Company, 10,000 ordinary shares ( 2% interest)Fox Company, 25,000 ordinary shares (10% interest)1,250,0001,600,0002,000,000T31. On May 1, 2020, Dale Company issued a 10% sharedividend.2. On November 1, 2020, Dale Company paid a cash dividendof P20 per share.3. On January 1, 2020, Jam Company paid P5,000,000 for50,000 additional ordinary shares of Fox Company whichrepresented a 20% investment in Fox Company.The fair value of all of Fox's identifiable assets net ofliabilities was equal to their carrying amount ofP20,000,000.Jam Company's initial 10% interest of 25,000 ordinaryshares of Fox Company was acquired on January 1, 2019for P2,000,000.The 10% interest was accounted for unler cost method.On January 1, 2020, this 10% existing interest had a fairvalue of P2,400,000.Fox Company reported net income of P6,000,000 for 2020,and paid dividend of P20 per share on December 31, 2020.Required:a. Compute the goodwill arising from acquisition on January1, 2020.b. Prepare journal entries for 2020.Present the investments in equity securities on December31, 2020.с.512

Associate company is a business organization which is having influence over the company more than…

1. On May 1, 2020, Dale Company issued a 10% share On January 1, 2020, Jam Company reported as long-term investmonts the following unquoted equity shares: Dale Company, 5,000 ordinary shares (1% interest) Ever Company, 10,000 ordinary shares ( 2% interest) Fox Company, 25,000 ordinary shares (10% interest) 1,250,000 1,600,000 2,000,000 dividend. 2. On November 1, 2020, Dale Company paid a cash dividend of P20 per share. 3. On January 1, 2020, Jam Company paid P5,000,000 for 50,000 additional ordinary shares of Fox Company which represented a 20% investment in Fox Company. The fair value of all of Fox's identifiable assets net o liabilities was equal to their carrying amount o P20,000,000. Jam Company's initial 10% interest of 25,000 ordinar shares of Fox Company was acquired on January 1, 201 for P2,000,000. The 10% interest was accounted for unler cost methoc On January 1, 2020, this 10% existing interest had a fa value of P2,400,000.. 4 Fox Company reported net income of P6,000,000 for 202 and paid dividend of P20 per share on December 31, 202

1. On May 1, 2020, Dale Company issued a 10% share On January 1, 2020, Jam Company reported as long-term investmonts the following unquoted equity shares: Dale Company, 5,000 ordinary shares (1% interest) Ever Company, 10,000 ordinary shares ( 2% interest) Fox Company, 25,000 ordinary shares (10% interest) 1,250,000 1,600,000 2,000,000 dividend. 2. On November 1, 2020, Dale Company paid a cash dividend of P20 per share. 3. On January 1, 2020, Jam Company paid P5,000,000 for 50,000 additional ordinary shares of Fox Company which represented a 20% investment in Fox Company. The fair value of all of Fox's identifiable assets net o liabilities was equal to their carrying amount o P20,000,000. Jam Company's initial 10% interest of 25,000 ordinar shares of Fox Company was acquired on January 1, 201 for P2,000,000. The 10% interest was accounted for unler cost methoc On January 1, 2020, this 10% existing interest had a fa value of P2,400,000.. 4 Fox Company reported net income of P6,000,000 for 202 and paid dividend of P20 per share on December 31, 202

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2018, Lakers Corporation acquired 3,000 shares of its P 20 par value ordinary share capital at P 72 per share. During 2018, Lakers issued 1,500 of these shares at P 100 per share. What accounts and amounts should Lakers credit in 2018 to record the issuance of the 1,500 shares? Treasury Shares Add’l Paid in Capital Retained Earnings Ordinary Share __________ __________ _________ _________
XYZ Corporation reported the following shareholders' equity on December 31, 2021 8% cumulative preference share capital, P50 par, liquidating value P55 per share, 20,000 shares authorized, issued and outstanding Ordinary share capital, P25 par, 200,000 shares authorized, 100,000 shares issued and outstanding Retained Earnings P400,000X Dividends on preference shares have been paid through 2019 but have not been declared for 2020 and 2021. On December 31, 2021, what is the book value per ordinary
2. Assurne the folowing information for Jewong Co, at December 31, 2020. 12% Cumulative and Non-participating Preference Share, P10 par, 15.000 shares asued and outstanding Ordinary Share, P5 par, 60,000 shares istued and outstanding. The company declared and paid cash dividends amounting to P30,000 for the vear. At the beginning of the year, uindectared dividends amounted to P13,500, what ie the amount of dividends paid to the company's ordinary sharehoiders? A.O B. 6,000 C. 13,500 D. 30,000 3. Chadwick Inc. declared 15% share dividend on its 15,000 iesued and outstanding shares of P1n par value ordinary share, which had a fair market value of PS per share before the share dividend was distributed 90 days after the declaration date. The company's current labilites wil increase by how much? A POP 8. 2,250 C P11,250 D. P22,500
1. On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur Corporation stocks at P48 per share, including P3 per share broker's fees and commissions. Arthur Corp. declared and paid P5 dividends per share to shareholders on December 20, 2021 and reported a net income of P2,240,000 for 2021 (earned evenly throughout the year). What is the balance of the investment in Arthur Corp. on December 31, 2021?
1. Information pertaining to dividends from jay Company's investments in ordinary shares during fhe year ended December 31,2020 is oas follows: Jay owns a 10% interest in Beai Compay, which declared a cash dividend of P500,000 on November 30, 2020 fo shareholders of record on Decemiber 31, 2020 and payable on january 15.2021. On October 15.2020 Jay received a iquidation dividend of P100.000 from Clay Mining Company. Jay ows a 5% inferest in Clay. How much dividend income should Jay report in its incoamestatement for 2020 G. 500.000 b. 600,000 C. 150000 a50.000 19000.00 ,000
The Following information was lifted from the shareholders equity section of ABC Corp: Share Capital - 10P par value, 280K shares Subscribed Capital Subscription Receivable Share Premium Retained Earnings Treasury Share (at cost, P6/sh) 2,800,000 940,000 530,000 1,025,000 1,700,000 240,000 On June 9, 2020, the BOD declared a 3P per share cash div of record on June 25, 2020 and payable on July 6, 2020. Compute for the Cash dividend payable and RE.
XYZ Corporation reported the following shareholders equity on December 31, 2021 8% cumulative preference share capital, P50 par, liquidating value P55 per share, 20,000 shares authorized, issued and outstanding Ordinary share capital, P25 par, 200,000 shares authorized, 100,000 shares issued and outstanding Retained Earnings- P400,000 Dividends on preference shares have been paid through 2019 but have not been declared for 2020 and 2021 On December 31, 2021, what is the book value per ordinary share?
Accounting for Corporation
5. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2010. The following are data available at Dec 31, 2020: Cost per share P3.00 Transaction cost per share (upon acquisition) P1 Most recent transaction price per share P2 Transaction cost per share (current) P.50 How much is the value of the investment at Dec 31, 2020? 2,000 2,500 3,000 4,000
Shaina company reported the following shareholders’ equity on December 31, 2019:Preference share capital, 10% cumulative and non participating, P100 par, 10,000 shares P1,000,000Ordinary share capital, P100 par, 20,000 shares 2,000,000Subscribed ordinary share capital, 10,000 shares 1,000,000Subscriptions receivable 250,000Share Premium 500,000Retained Earnings 1,200,000Treasury ordinary shares, 5,000 at cost 400,000 The preference dividends are in arrears for 2017, 2018 and 2019. a. What is the book value per ordinary share? b. What is the book value per preference share?
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What activity is selling additional ordinary shares by Heaven Inc.?A. Operating ActivityB. investing activityC. financing activityD. not applicable
On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip Company's stockholders equity on January 1 and December 31, 2020 is shown below: Share capital Revaluation surplus Retained earnings January 1 3,000,000 1,000,000 December 31 3,000,000 1,300,000 1,500,000 By Jan 1, 2020, all of Flip's identified assets and liabilities were recognized at fair value. During the current fiscal year, the flip firm recorded a profit before income tax of 1,000,000 and paid dividends to stockholders of 150,000. The revaluation excess is the outcome of Flip Company's land reassessment on December 31, 2020. Flip displays OCI net of any relevant income tax. Furthermore, Flip Company provides depreciation using the declining balance approach, whereas Churl Company employs a straight line. The cumulative depreciation would have been enhanced by 200,000 if Flip Company had used the straight line. The tax rate is set at 35%. On December 31, 2020, Churl Company will report its…