During 2021, the first year of operations, Beneath Company purchased the following equity securities: Cost Market value December 31, 2021 December 31, 2022 Market value Security One Security Two Security Three Security Four 2,200,000 700,000 1,600,000 2,000,000 1,400,000 1,000,000 1,500,000 2,500,000 900,000 1,100,000 1,600,000 1,200,000 Security One and Security Two are held for trading and Security Three and Security Four are measured as at fair value through other comprehensive income by election. During 2022, the entity sold one-half of Security One for P1,000,000, and one-half of Security Four for P1,300,000. Required: Prepare journal entries for 2021 and 2022.
During 2021, the first year of operations, Beneath Company purchased the following equity securities: Cost Market value December 31, 2021 December 31, 2022 Market value Security One Security Two Security Three Security Four 2,200,000 700,000 1,600,000 2,000,000 1,400,000 1,000,000 1,500,000 2,500,000 900,000 1,100,000 1,600,000 1,200,000 Security One and Security Two are held for trading and Security Three and Security Four are measured as at fair value through other comprehensive income by election. During 2022, the entity sold one-half of Security One for P1,000,000, and one-half of Security Four for P1,300,000. Required: Prepare journal entries for 2021 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 15-6 (AAT
During 2021, the first year of operations, Beneath Company
purchased the following equity securities:
Cost
Market value
Market value
December 31, 2021 December 31, 2022
Security One
Security Two
Security Three
Security Four
2,200,000
700,000
1,600,000
2,000,000
900,000
1,100,000
1,600,000
1,200,000
Security One and Security Two are held for trading and
Security Three and Security Four are measured as at fair
value through other comprehensive income by election.
1,400,000
1,000,000
1,500,000
2,500,000
During 2022, the entity sold one-half of Security One for
P1,000,000, and one-half of Security Four for P1,300,000.
Required:
Prepare journal entries for 2021 and 2022.
Page 1I 7
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