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

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The December 31, 2021shareholder's equity section of Cubix Corp.'s balance sheet is as follows: Cubix Corp. Partial Balance Sheet As of December 31, 2021 Shareholders Equity Share Capital Ordinary Shares (Note 1) Share Premium P600,000 375,000 P975,000 365,00 Total Shareholder's Equity P1.340,000 Total Share Capital Retained Earnings Note 1: P4 par value, 200,000 shares authorized, 150,000 shares issued and outstanding The following transactions took place during January 2022 Jan 4 Purchased 24,000 shares of its own Cubix' stock for P168,000. Jan. 10 Sold 4,000 treasury shares for P9 per share. Jan. 29 Sold 14,000 treasury shares for P6 per share. Jan 31 Sold the remaining 6,000 treasury shares for P7 per share. Required: Prepare the journal entries
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d
Prepare journal entries for 2020
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