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Dec. 29, 20X1, Co. acquires 1,000 ас ts of a broker at P1.00 per unit. Ownership over the financial asset transfers to D Co., and DF Co. pays the purchase price, on Jan. 3, 20x2. The fair valu per unit are P1.75 on Dec. 31, 20x1 and P1.50 on Jan. 3, 20x2. Requirements: Provide the journal entries under the (1) trade da accounting and (2) settlement date accounting assuming the in vestment

Dec. 29, 20X1, Co. acquires 1,000 ас ts of a broker at P1.00 per unit. Ownership over the financial asset transfers to D Co., and DF Co. pays the purchase price, on Jan. 3, 20x2. The fair valu per unit are P1.75 on Dec. 31, 20x1 and P1.50 on Jan. 3, 20x2. Requirements: Provide the journal entries under the (1) trade da accounting and (2) settlement date accounting assuming the in vestment

FINANCIAL ACCOUNTING
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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1. On Dec. 29, 20x1, DF Co. acquires 1,000 units of an investment through a broker at P1.00 per unit. Ownership over the financial asset transfers to DF Co., and DF Co. pays the purchase price, on Jan. 3, 20x2. The fair values per unit are P1.75 on Dec. 31, 20x1 and P1.50 on Jan. 3, 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
Transcribed Image Text:1. On Dec. 29, 20x1, DF Co. acquires 1,000 units of an investment through a broker at P1.00 per unit. Ownership over the financial asset transfers to DF Co., and DF Co. pays the purchase price, on Jan. 3, 20x2. The fair values per unit are P1.75 on Dec. 31, 20x1 and P1.50 on Jan. 3, 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
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