For numbers 29 to 31 LABADA CO.'s portfolio of trading securities includes the following on December 31, 2019: Cost Fair Value 15,000 ordinary shares of Camias Co. P1,431,000 P1,251,000 30,000 ordinary shares of Ganda Co. 1,638,000 1,710,000 P3,069,000 P2,961,000 All of the above securities have been purchased in 2019. In 2020, Labada Co. completed the following securities transactions: Mar. 1 Sold 15,000 shares of Camias Co. ordinary shares at P93 April 1 Bought 1,800 ordinary shares of Waston, Inc. at P135 plus commission, taxes, and other transaction costs of P4,950. The Labada Co. portfolio of trading securities appeared as follows on December 31, 2020: Cost Fair Value 30,000 ordinary shares of Ganda Co. P1,638,000 P1,740,000 ! 1,800 ordinary shares of Waston, Inc. 247,950 225,000 ? P1.885,950 P1.965.000 ' Net of P19,500 estimated transaction costs that would be incurred on the sale of the securities. * Net of P4,500 estimated transaction costs that would be incurred on the sale of the securities.
For numbers 29 to 31 LABADA CO.'s portfolio of trading securities includes the following on December 31, 2019: Cost Fair Value 15,000 ordinary shares of Camias Co. P1,431,000 P1,251,000 30,000 ordinary shares of Ganda Co. 1,638,000 1,710,000 P3,069,000 P2,961,000 All of the above securities have been purchased in 2019. In 2020, Labada Co. completed the following securities transactions: Mar. 1 Sold 15,000 shares of Camias Co. ordinary shares at P93 April 1 Bought 1,800 ordinary shares of Waston, Inc. at P135 plus commission, taxes, and other transaction costs of P4,950. The Labada Co. portfolio of trading securities appeared as follows on December 31, 2020: Cost Fair Value 30,000 ordinary shares of Ganda Co. P1,638,000 P1,740,000 ! 1,800 ordinary shares of Waston, Inc. 247,950 225,000 ? P1.885,950 P1.965.000 ' Net of P19,500 estimated transaction costs that would be incurred on the sale of the securities. * Net of P4,500 estimated transaction costs that would be incurred on the sale of the securities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
*What amount of unrealized gain on these securities should be reported in the 2020 income statement?
*What is the gain on the sale of Camias Co. ordinary shares on March 1, 2020?
*What amount should be reported as trading securities in Labada’s statement of financial position on December 31, 2020?
Transcribed Image Text:For numbers 29 to 31
LABADA CO.'s portfolio of trading securities includes the following on December 31, 2019:
Cost
Fair Value
15,000 ordinary shares of Camias Co.
P1,431,000
P1,251,000
30,000 ordinary shares of Ganda Co.
1,638,000
1,710,000
P3,069,000
P2,961,000
All of the above securities have been purchased in 2019. In 2020, Labada Co. completed the
following securities transactions:
Mar. 1 Sold 15,000 shares of Camias Co. ordinary shares at P93
April 1 Bought 1,800 ordinary shares of Waston, Inc. at P135 plus commission, taxes, and
other transaction costs of P4,950.
The Labada Co. portfolio of trading securities appeared as follows on December 31, 2020:
Cost
Fair Value
30,000 ordinary shares of Ganda Co.
P1,638,000
P1,740,000 !
1,800 ordinary shares of Waston, Inc.
247,950
225,000 2
P1.885.950
P1.965.000
' Net of P19,500 estimated transaction costs that would be incurred on the sale of the securities.
2 Net of P4,500 estimated transaction costs that would be incurred on the sale of the securities.
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