3. On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of P6,300,000 and originally acquired at a total amount of P5,900,000. The investment is classified as fair value through other comprehensive income. On March 1, 2021, a 3-for-2 stock split was completed by Harry Company. On September 30, 2021, GHI Corp. sold 21,000 shares of Harry Company for its fair value of P73/share. On December 31, 2021, a share of Harry Company has a fair value of P75/share. What is the balance of Unrealized Gain or Loss Other Comprehensive Income to be transferred to Retained Earnings the sale of the investment on September 30, 2021? (Indicate if debit or credit)

3. On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of P6,300,000 and originally acquired at a total amount of P5,900,000. The investment is classified as fair value through other comprehensive income. On March 1, 2021, a 3-for-2 stock split was completed by Harry Company. On September 30, 2021, GHI Corp. sold 21,000 shares of Harry Company for its fair value of P73/share. On December 31, 2021, a share of Harry Company has a fair value of P75/share. What is the balance of Unrealized Gain or Loss Other Comprehensive Income to be transferred to Retained Earnings the sale of the investment on September 30, 2021? (Indicate if debit or credit)

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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Use the following accounts; Cash Foreign exchange gain Foreign exchange loss Capital Bank Short-term investments Loss on sale of short-term investment Gain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the company's first month: Date 12/1 The owner invested $ 200,000 cash for capital. 12/5 r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar) 12/10 The Company purchased short-term investment with cash for $2,500. 12/18 The Company sold short-term investment with cash for $2.000 Note: • Exchange rate was 1 Euro= 1,4 Dollar at the end of the period. Requirements: 1- Give the journal entry for each transaction. 2- Post each transaction to Taccounts.
Select one:a.(iii) and (iv) onlyb.(ii) and (iii) onlyc.(i) and (ii) onlyd.All four
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T o p i c : F i n a n c i a l A n a l y s i s G i v e t h r e e p o s s i b l e c a u s e s o f t h e f o l l o w i n g : A d v e r s e d i r e c t m a t e r i a l s p r i c e v a r i a n c e. F a v o r a b l e d i r e c t l a b o r r a t e v a r i a n c e . F a v o r a b l e d i r e c t m a t e r i a l s u s a g e v a r i a n c e. A d v e r s e d i r e c t l a b o r e f f i c i e n c y v a r i a n c e. A n d e x p l a i n ho w y o u w o u l d i d e n t i f y w h i c h v a ri a n c e s t o i n v e s t i g a t e N o t e : A n s w e r s s h o u l d b e q u i t e l o n g f o r m e t o u n d e r t a n d m o r e .
W h a t i s t h e c o s t o f c a p i t a l ? W h a t a r e t h e n e t p r o c e e d s f r o m t h e s a l e o f a b o n d ? W h a t a r e f l o t a t i o n c o s t s , a n d h o w d o t h e y a f f e c t a b o n d ’ s n e t p r o c e e d s ? W h a t p r e m i s e a b o u t s h a r e v a l u e u n d e r l i e s t h e c o n s t a n t - g r o w t h v al u a t i o n ( G o r d o n g r o w t h ) m o d e l t h a t i s u s e d t o m e a s u r e t h e c o s t o f c o m m o n s t o c k e q u i t y , r s ?
question G and f.
C a p i t a l R a i s i n g f o r C o r p o r a t i o n s D e s c r i b e t h e d i r e c t i o n a l e f f e c t ( i n c r e a s e , d e c r e a s e , o r n o e f f e c t ) o f e a c h t r a n s a c t i o n o n t h e c o m p o n e n t s o f t h e b o o k v a l u e o f c o m m o n s h a r e h o l d e r s ’ e q u i t y . E x p l a i n y o u r a n s w e r . I s s u a n c e o f $ 1 p a r v a l u e c o m m o n s t o c k a t a n a m o u n t g r e a t e r t h a n p a r v a l u e D o n a t i o n o f l a n d b y a g o v e r n m e n t a l u n i t t o a c o r p o r a t i o n C a s h d i v i d e n d d e c l a r e d 2 - f o r - 1 s t o c k s p l i t a n n o u n c e d a n d i s s u e S t o c k o p t i o n s g r a n t e d
W h a t b a s i c p r o c e d u r e i s u s e d t o v a l u e a b o n d t h a t p a y s a n n u a l i n t e r e s t ? S e m i a n n u a l i n t e r e s t ? W h a t r el a t i o n s h i p b e t w e e n t h e r e q u i r e d r e t u r n a n d t h e c o u p o n i n t e r e s t r a t e w i l l c a u s e a b o n d t o s e l l a t a d i s c o u n t ? A t a p r e m i u m ? A t i t s p a r v a l u e ? I f t h e r e q u i r e d r e t u r n o n a b o n d d i f f e r s f r o m i t s c o u p o n i n t e r e s t r a t e , d e s c r i b e t h e b e h a v i o r o f t h e b o n d v a l u e o v e r t i m e a s t h e b o n d m o v e s t o w a r d ma t u r i t y . A s a r i s k - a v e r s e i n v e s t o r , w o u l d y o u p r e f e r b o n d s w i t h s h o r t o r l o n g p e r i o d s u n t i l m a t u r i t y ? W h y ?
E x p l a i n t h e l i m i t a t i o n s o f b r e a k e v e n a n a l y s i s.
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