Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were acquired for trading purposes. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. Required: Give all entries relating to the foregoing for Year 3

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Inn Corporation had 30,000 ordinary shares of NPA Company
which it acquired during Year 2 for a total consideration of
P1,800,000, including P30,000 directly attributable costs. The
shares were acquired for trading purposes.
On December 31, Year 2, the NPA shares were selling at P65 per
share.
In July Year 3, Inn Corporation received a 20% bonus issue.
Subsequently during the year, it sold 15,000 shares at 70 per
share.
The fair value of NPA ordinary at December 31, Year 3
was P72 per share.
Required:
Give all entries relating to the foregoing for Year 3
Transcribed Image Text:Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were acquired for trading purposes. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. Required: Give all entries relating to the foregoing for Year 3
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