Problem 22-2 (ACP)Candel Company owned 10,000 equity shares of XYZCompany with carrying amount of P90 per share.On October 31, 2021, Candel Company declared these sharesas property dividend to be paid on March 31, 2022.The quoted price for XYZ share is P130 on October 31, 2021,P150 on December 31, 2021 and P110 on March 31, 2022.Required:Prepare journal entries in connection with the propertydividend.787

Dividend is the amount, that is paid to equity shareholders in lieu of risk taken by them. Property…

Answered: Candel Company owned 10,000 equity…

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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Omega Company acquired 20,000 shares of Zion Company on January 1, 2019 at P150 per share. Zion Company had 80,000 shares outstanding with a carrying amount of P8,000,000. The difference between the carrying amount and fair value of Zion Company on January 1, 2019 is attributable to building . Zion Company recorded earnings of P3,600,000 and P3,900,000 for 2019 and 2020, respectively, and a per-share dividend of P16 in 2019 and P20 in 2020. Omega Company has a 10-year straight line depreciation policy for building. Required: Compute for the percentage of ownership. Compute the investment income for 2019. Compute for the investment income for 2020. Compute for the dividend income for 2019 and 2020. Compute for the caring amount of Investment in Associates at the end of 2020.
The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?
On April 2, 2020, enson Ltd. acquired 2,500 shares of Lam Corp. for $5o,000: ihts investmentrepresents a 18% interest in Lam Corp. Jenson Ltd. has classified this investment as FVTLP. OnOctober 31, 2020, Lam Corp. paid a $42,000 dividend to its shareholders. At March 31, 2021, LamCorp.'s shares were valued at $15 per share and Lam Corp. reported net income of $145,000 forthe year. On May 15, 2021, Jenson Ltd. sold the shares for $25,000. Both Jenson Ltd. and LamCorp. have March 31, 2021 year-ends.Required:Prepare dated journal entries for the investment on the acquiring company's books fromacquisition to disposal. Ignore income taxes. Journal entry descriptions are optional:
In the December 31, 2020, statement of financial position, what is the carrying amount of the investment in equity securities?On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for 100,000 ordinary shares. On this date, the net assets of Kiyosaki Corp. totaled P40, 000, 000. The fair values of Kiyosaki Corp.'s identifiable assets and liabilities were equal to their book values. Megan did not have the ability to exercise significant influence over the operating and financial policies of Kiyosaki. Megan received dividends of P1.40 per share from Kiyosaki on October 1, 2020. Kiyosaki reported net income of P5, 000, 000 for the year ended December 31, 2020. Megan classified the investment as at fair value through other comprehensive income. Market price for the 100,000 shares was P9, 000, 000 on December 31, 2020.Megan paid P30, 000, 000 on January 1, 2021, for 300,000 additional Kiyosaki ordinary shares, which represents a 25% interest in…
On January 1, 2020, Edelyn Corporation acquired 10,000 shares of JKL Company for P500,000. The 10,000 shares are equivalent to 20% interest of the investee. JKL Company reported the following net income or loss: 2020 - P1,000,000 2021 - (P5,000,000) 2022 - P300,000 Requirements: 1. Prepare the necessary journal entries to record the share of income or loss in 2020, 2021, and 2022. 2 What is the carrying value of the investment on December 31, 2020? December 31, 2021? December 31, 2022?
BARK Corporation acquired 10,000 Company shares on February 5, 2016 at P50 which include P10 per share broker's fees and commissions, A P50,000 cash dividends were received from MEOW Company on March 20, 2016. These dividends were declared on January 5 payable to shareholders as of February 10. MEOW Company shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2016. The investments were designated as FVPL. How much should be recognized as dividend income?

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