During 2019, the first year of operation, Maly Corporation made various investments in trading securities. On December 31, 2019, the investments had the following cost and market value: Cost Market Value P 1,300,000 800,000 1,000,000 12/31/2019 P 1,250,000 900,000 700,000 XYZ MNO FGH How much should be included as unrealized loss on the income statement for the year 2019?

During 2019, the first year of operation, Maly Corporation made various investments in trading securities. On December 31, 2019, the investments had the following cost and market value: Cost Market Value P 1,300,000 800,000 1,000,000 12/31/2019 P 1,250,000 900,000 700,000 XYZ MNO FGH How much should be included as unrealized loss on the income statement for the year 2019?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In 2019, Edward Company purchased equity securities as a trading investment. For the year ended December 31, 2019, the entity recognized an unrealized holding loss of P230,000. There were no security transactions during 2020. Pertinent information on December 31, 2020 is as follows: Security Cost Market Value A 2,450,000 2,300,000 B 1,800,000 1,820,000 4,250,000 4,120,000 In the 2020 income statement, what amount should be reported as unrealized holding gain or loss?
On January 1, 2020, May Company appropriately reported a debit balance of P125,000 (before income tax effect) in the fair value adjustment account on its investment to other comprehensive Income, There was no change during 2020 in the composition of the portfolio of investments. Pertinent data on December 31, 2020 are as follows:Securities Cost MarketC Pl,500,000 PI,475,000P 1,250,000 1,000,000A 2,250,000 1,750,000Total P5,000,000 P4,225,0001. By what amount the equity securities had decreased during 2020? a. none b. 125,000 c. 775,000 d. 900,000 2. What amount of unrealized loss should May company report in December 31,2020 shareholder's equity related to its investment, ignore income tax? a. none b. 125,000 c. 775,000 d. 900,000
MBA Corporation reported net income of P7,410,000 for 2020, which included the following items: Unrealized loss on financial assets at FVOCI (P540,000); Loss from fire (P1,400,000); Gain on early retirement of long term debt: P2,200,000; Gain from change in fair value attributable to credit risk of financial liability designated at FVPL : P500,000; Prior period adjustment for depreciation, net of tax (P750,000). How much is the true net income for 2020?
How much should be included as unrealized loss on the income statement for the year 2019?
Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet: Total Current Assets $200,000 Total Assets $500,000 Total Current Liabilities $169,000 Total Non Current Liabilities $300,000 On January 2020 Excelsior sells temporary investments to pay off $56,400 in long term debt Required 1: How much will working capital increase (decrease) by when comparing December 2019 with January 2020? Required 2: If no other transaction took place in January 2020, the current ratio at the end of January 2020 is: Required 3: If no other transaction took place in January 2020, the debt to equity ratio at the end of January 2020 is: Required 4: If no other transaction took place in January 2020, the financial leverage in January 2020 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If last 12 month sales as of January 2020 amount to $480,000, the working capital turnover for the period ended January 31st 2020 is:
Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet:Total Current Assets $200,000Total Assets $500,000Total Current Liabilities $156,500Total Non Current Liabilities $300,000On January 2020 Excelsior sells temporary investments to pay off $48,900 in long term debt Required 1: How much will working capital increase (decrease) by when comparing December 2019 with January 2020? $ Required 2: If no other transaction took place in January 2020, the current ratio at the end of January 2020 is: Required 3: If no other transaction took place in January 2020, the debt to equity ratio at the end of January 2020 is: Required 4: If no other transaction took place in January 2020, the financial leverage in January 2020 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If last 12 month sales as of January 2020 amount to $480,000, the working capital turnover for the period ended January 31st 2020 is:
Hardev
On December 21, 2020, Sweet Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $19,300 $18,200 $(1,100 ) Colorado Co. stock 10,400 9,400 (1,000 ) Buffaloes Co. stock 19,300 19,930 630 Total of portfolio $49,000 $47,530 (1,470 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,470 ) During 2021, Colorado Co. stock was sold for $9,910. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$18,310; Buffaloes Co. stock—$19,830. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
V Company's records provided the following information for 2019: decrease in accounts payable, $4,500 loss on sale of land, $1,500 increase in inventory, $7,700 increase in income taxes payable, $2,300 net income, $66,300 patent amortization expense, $1,900 ordinary loss, $6,900 decrease in deferred taxes payable, $2,600 amortization of discount on bonds payable, $1,400 payment of cash dividends, $25,000 depletion expense, $5,200 decrease in salaries payable, $1,600 decrease in accounts receivable, $3,100 gain on sale of equipment, $6,000 proceeds from issuance of stock, $55,000 ordinary gain, $3,300 depreciation expense, $12,000 amortization of discount on investment in bonds, $1,000 Required Prepare the operating activities section of V's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash. V COMPANY Statement of Cash Flows (Partial) For Year Ended December 31, 2019 Operating Activities: $fill…
What amount of loss/gain from investments should Sofia report in 2021 income statement?* Sofia had investments in equity securities costing $1,000,000 that were classified as investment in fair value thru other comprehensive income. On June 30, 2021, Sofia decided to reclassify the investment as investment in fair value thru profit and loss. The investments' fair value was P985,000 at December 31, 2020 and $950,000 at June 30, 2021, and #1,500,000 at December 31, 2021. ₱ 15,000 loss ₱ 0
At December 31, 2025, Pharoah Company has a portfolio of equity securities valued at $136000. Its cost was $116000. If the Fair Value Adjustment has a debit balance of $7200, which of the following journal entries is required at December 31, 2025? O Unrealized Holding Gain or Loss-Income Fair Value Adjustment Fair Value Adjustment Unrealized Holding Gain or Loss-Income Fair Value Adjustment Unrealized Holding Gain or Loss-Income Unrealized Holding Gain or Loss-Income Fair Value Adjustment 12800 12800 20000 20000 12800 12800 20000 20000
Lopez Company purchased equity securities during 2020 to be held as Investment. The cost and Market Value of the investments are: December 31,2020. Cost. Market Trading Securities. 2,000,000. 2,500,000 Securities not held for trading. 3,000,000. 2,300,000 December 31,2021 Cost Market Trading Securities. 1,000,000 1,100,000 Securities not held for trading. 1,500,000. 1,450,000 On June 30 2021, half of the trading Securities were sold for 1,500,000 and securities not held for trading were sold for 1,100,000. The securities not held for trading are measured at fair value through other comprehensive income by election. REQUIRED: Prepare the Journal entries for 2020 and 2021

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