FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, Acquired 12,000 shares of Buffet Corp. at P3.00 per share. 20x1 Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. 20x2 Prepare the journal entries assuming the investment is classified as held for trading securities and Elements Co. does not use a fair value adjustment account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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FVPL vs. FVOCI (election)
Fact pattern for the next three items:
Elements Co. had the following investment transactions:
Dec. 3,
20x1
Acquired 12,000 shares of Buffet Corp. at P3.00 per share.
Elements incurred P1,800 brokerage commission.
Buffet Corp.'s shares have a quoted price of P5.00 per share.
Dec. 31,
20x1
Jan. 16,
Elements Co. sold all the shares at P8.00 per share.
Elements incurred sale transaction costs of P4,800.
20x2
Prepare the journal entries assuming the investment is classified as
held for trading securities and Elements Co. does not use
adjustment account.
fair value
Transcribed Image Text:FVPL vs. FVOCI (election) Fact pattern for the next three items: Elements Co. had the following investment transactions: Dec. 3, 20x1 Acquired 12,000 shares of Buffet Corp. at P3.00 per share. Elements incurred P1,800 brokerage commission. Buffet Corp.'s shares have a quoted price of P5.00 per share. Dec. 31, 20x1 Jan. 16, Elements Co. sold all the shares at P8.00 per share. Elements incurred sale transaction costs of P4,800. 20x2 Prepare the journal entries assuming the investment is classified as held for trading securities and Elements Co. does not use adjustment account. fair value
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