Forest Company owns 20,000 shares of Plantation Company’s 200,000 shares of P100 par, 6% cumulative, non-participating preference share capital and 10,000 shares representing 2% ownership of Plantation’s ordinary share capital. During 2020, Plantation Company declared and paid preference dividends of P2,400,000. No dividends had been declared or paid during 2019. In addition, Forest Company received a 5% share dividend on ordinary share from Plantation Company when the quoted market price of Plantation’s ordinary share was P10.  What amount should be reported as dividend income for 2020?

Q: Ordinary Share Capital (5,000 shares, P100 par value) Share Premium (purely issuance) Accumulated…

A: The Accumulated profits or retained earnings are decreased with declaration of dividend. The…

Q: On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of…

A: Solution: Purchase cost of shares = 15000*P25 + P15,000 = P390,000 Sale value of shares = 5000*P30 =…

Q: The entry to record the declaration of the dividend would include a debit to Retained Earnings of

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: (Use the PFRS for SMEs) On December 31, 2021, Taher Co. acquired 30% of the ordinary shares that…

A: Associate - It is an entity where the investors hold significant interest or influence but it is not…

Q: epare the journal entries for Grouper for 2019 and 2020, assuming that Grouper cannot exercise…

A:

Q: On January 1, 2019, Ailyssa Company acquired 30%of the voting share capital of Ruby Company for…

A: An unrealized gain is a rise in the price of an investment that the investor has not sold. A drop in…

Q: Boxer Company owned 20,000 shares of King Company that were purchased in 2019 for $500,000. On May…

A:

Q: Kobe Company owns 50% of Lakers Company’s cumulative preference shares and 30% of its ordinary…

A: Formula: Preferred dividend = Preference shares  x preferred dividend rate.

Q: Crane Company owned 22100 shares of Wildhorse Co. purchased in 2017 for $607750. On December 15,…

A: There might be a difference in the property declared as dividend on the date of acquisition and the…

Q: TSLCorporation had $180,000 of $10 par value common stock outstanding on January 1, 2020, and…

A: The question related to Accounting for Investment in Associates. The details are given.

Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000.  Happy…

A: when company acquire  certain percentage of share in another company the company share the profit…

Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: Introduction Net income is a company's overall performance after all costs and expenses are removed…

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: Prepare dated journal entries for the investment on acquiring the company's books from acquisition…

A: A financial instrument is first recorded at transaction price for FVTPL. Any transaction expenses…

Q: What total amount of income should be recognized for 2019?

A: At the end of the year, BBB company's holding in TJ company is 30%, so Equity method is used for…

Q: What amount of unrealized gain should Sisig Corp. report in its December 31, 2020 Statement of…

A: Unrealized gain is the gain which has been earned by the company when the investment is measured at…

Q: BOY Co. acquired 50,000 ordinary shares of GIRL Co. on September 30, 2019 for P8,250,000. On October…

A: 1. Details of GIRLS Co. shares held by BOYS Co. before and after the share split. Date Cost of…

Q: On January 1, 2021, Familia purchased 1,600 ordinary shares of another entity for P2,000,000. At…

A: Number of shares held by Familia for year ending  December 31, 2022 = 1600×1/2 =800 shares

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: Rain and Bow Company was incorporated on January 1, 2019 with proceeds from the issuance of…

A: BALANCE SHEET   Balance sheet is one of the important financial statements of the Company. Balance…

Q: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair…

A: Consolidated profit refers to the aggregated profit of parent and subsidiary company that is stated…

Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying 1,500, 000 for 7,500…

A: Investment Income The fair value at the conclusion of the period, which is also established by net…

Q: Maria Company acquired 25,000 ordinary shares of Sarah Company at P 90 per share, on April 1, 2019.…

A:

Q: In 2019, ABC Co. bonght 10,000 shares of XYZ Co. for P230,000. On September 1, 2019, ABC Co.…

A: The stock dividend is a method of capitalizing the retained earnings account. It is distributed for…

Q: Agee Corporation acquired a 35% interest in Trent Company on January 1, 2019, for $750,000. At that…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shares with…

A: The consolidated financial statement refers to the financial statement prepared by the parent…

Q: An investor company purchased 121,000 of the 250,000 outstanding shares of the investee company's…

A: Owners’ equity: It is a owner's value and amount invested by an individual in the firm. It is…

Q: Novak Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Companies do invest in other companies. Sometimes these investment are less than 20% so it is just…

Q: On January 1, 2021, PingPing Corp. acquired all the assets and liabilities of Willy Corp. by issuing…

A:

Q: Kobe Company owns 50% of Lakers Company’s cumulative preference shares and 30% of its ordinary…

A: Amount of investment income will be total of return on preference share and return on equity shares.

Q: kholders' equity on that date. On April 1, 2021, Lapwing sold 20% interest (one-fourth of its…

A: Compare the cash received to the item's carrying value to determine if you earned a profit or a loss…

Q: Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2017 for P 660,000.…

A: As Augstin Inc distributed  stock dividend  of 10%

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

A:

Q: On January 1, 2021, Familia purchased 1,600 ordinary shares of another entity for P2,000,000. At…

A: If investments in shares are designated as FVOCI (Fair value through other comprehensive income),…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Under the equity method, the investor initially records the investment at cost and subsequently…

Q: Chevy Co mpany owns 50o% of another entity's preference share canital and 40% of its ordinary share

A: Chevy Co  owns 50% of another entity's Pref. Share Capital .  The Pref. Shares are 10%…

Q: BBB Company purchased 10% of TJ Company's 100,000 outstanding ordinary shares on January 1, 2019 for…

A: An Associate is an organization over which an investor has notable influence, for example, the power…

Q: standing common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $…

A: Given : Purchase price was $ 1,245,600 for 51,900 shares. declared and paid an $ 0.85 per share…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.