Homework Help is Here – Start Your Trial Now!
Business
Accounting
How much was the cash received from the sale of investment in associate?

How much was the cash received from the sale of investment in associate?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

INVESTING ACTIVITIES

How much was the cash received from the sale of investment in associate?

Statement of Cash Flows, Investing Activities. The following were taken from the records of CEBU Company on December 31, 2021 regarding its non-current assets: (1) Equipment EQUIPMENT Particulars Debit Credit | January 1, 2021 – Beginning balance May 31, 2021 - Acquisition October 31, 2021 - Disposal 440,000 260,000 P 100,000 ACCUMULATED DEPRECIATION - EQUIPMENT Particulars Debit Credit January 1, 2021 - Beginning balance October 31, 2021 - Disposal December 31, 2021 - Depreciation expense 140,000 P 60,000 120,000 In addition, on the income statement of CEBU, a gain on sale of equipment amounting to P5,000 was presented. (2) Investments in Associates INVESTMENT IN ASSOCIATES Particulars Debit Credit January 1, 2021 - Beginning balance March 31, 2021- Acquisition July 31, 2021 - Disposal December 31, 2021 - Share in net income December 31, 2021 – Dividends received P 1,200,000 960,000 P 500,000 290,000 120,000 In addition, on the income statement of CEBU, a loss on sale of investment amounting to P45,000 was presented.
Transcribed Image Text:Statement of Cash Flows, Investing Activities. The following were taken from the records of CEBU Company on December 31, 2021 regarding its non-current assets: (1) Equipment EQUIPMENT Particulars Debit Credit | January 1, 2021 – Beginning balance May 31, 2021 - Acquisition October 31, 2021 - Disposal 440,000 260,000 P 100,000 ACCUMULATED DEPRECIATION - EQUIPMENT Particulars Debit Credit January 1, 2021 - Beginning balance October 31, 2021 - Disposal December 31, 2021 - Depreciation expense 140,000 P 60,000 120,000 In addition, on the income statement of CEBU, a gain on sale of equipment amounting to P5,000 was presented. (2) Investments in Associates INVESTMENT IN ASSOCIATES Particulars Debit Credit January 1, 2021 - Beginning balance March 31, 2021- Acquisition July 31, 2021 - Disposal December 31, 2021 - Share in net income December 31, 2021 – Dividends received P 1,200,000 960,000 P 500,000 290,000 120,000 In addition, on the income statement of CEBU, a loss on sale of investment amounting to P45,000 was presented.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS