Investment in FAFVTPL, FAFVTOCI, and FA@AC Your audit of the Baliuag Corporation disclosed that the company owned the following securities on December 31, 2019: FAFVTPL: Security Shares Cost Fair value Sputnik, Inc. 4,800 P 72,000 P 92,000 Explorer, Inc. 8,000 216,000 144,000 10%, P100,000 face value, Vanguard bonds (interest payable semiannually on Jan. 1 and Jul. 1) 79,200 81,720 Total P 367,200 P317,720 FAFVTOCI: Security Shares Cost Fair value Score Products 16,000 P 688,000 P 720,000 Tiros, Inc. 120,000 3,120,000 2,920,000 Midas,Inc. 40,000 480,000 640,000 Total P 4,288,000 P4,280,000 FA@AC Cost Carrying amount 12%, 1,000,000 face value, Discoverer bonds (interest payable annually every Dec. 31) P950,000 P963,000 During 2020, the following transactions occurred: Jan. 1 Receive interest on the Vanguard bonds. Mar. 1 Sold 4,000 shares of Explorer Inc. for P76,000. May 15 Sold 1,600 shares of Midas, Inc. for P15 per share. July 1 Received interest on the Vanguard bonds. Dec. 31 Received interest on the Discovers bonds. Dec. 31 Transferred the Discoverer bond to the FAFVTOCI portfolio. The bonds were selling at 101 on this date. The bonds were purchased on January 2, 2019. The discount was amortized using the effective interest method. The quoted prices of the shares and bonds on December 31, 2020, are as follows: Sputnik, Inc P22 per share Explorer, Inc. P15 per share 10% Vanguard bonds 75,600 Score Products P42 per share Tiros, Inc. P28 per share Midas, Inc. P18 per share Questions: Gain or loss on sale of 4,000 Explorer, Inc. shares on May 1, 2020. Realized gain or loss on sale of 1,600 Midas, Inc. shares on May 15, 2020. Total interest income for the year 2020. The amount to be recognized in the other comprehensive regarding the transfer of Discoverer bonds to FAFVTOCI. The amount of FAFVTPL and FAFVTOCI as of December 31, 2020 should be.
Investment in FAFVTPL, FAFVTOCI, and FA@AC
Your audit of the Baliuag Corporation disclosed that the company owned the following securities on December 31, 2019:
FAFVTPL:
Security Shares Cost Fair value
Sputnik, Inc. 4,800 P 72,000 P 92,000
Explorer, Inc. 8,000 216,000 144,000
10%, P100,000 face
Vanguard bonds (interest payable
semiannually on Jan. 1 and Jul. 1) 79,200 81,720
Total P 367,200 P317,720
FAFVTOCI:
Security Shares Cost Fair value
Score Products 16,000 P 688,000 P 720,000
Tiros, Inc. 120,000 3,120,000 2,920,000
Midas,Inc. 40,000 480,000 640,000
Total P 4,288,000 P4,280,000
FA@AC
Cost Carrying amount
12%, 1,000,000 face value,
Discoverer bonds (interest
payable annually every Dec. 31) P950,000 P963,000
During 2020, the following transactions occurred:
Jan. 1 Receive interest on the Vanguard bonds.
Mar. 1 Sold 4,000 shares of Explorer Inc. for P76,000.
May 15 Sold 1,600 shares of Midas, Inc. for P15 per share.
July 1 Received interest on the Vanguard bonds.
Dec. 31 Received interest on the Discovers bonds.
Dec. 31 Transferred the Discoverer bond to the FAFVTOCI portfolio. The bonds were selling at 101 on this date. The bonds were purchased on January 2, 2019. The discount was amortized using the effective interest method.
The quoted prices of the shares and bonds on December 31, 2020, are as follows:
Sputnik, Inc P22 per share
Explorer, Inc. P15 per share
10% Vanguard bonds 75,600
Score Products P42 per share
Tiros, Inc. P28 per share
Midas, Inc. P18 per share
Questions:
- Gain or loss on sale of 4,000 Explorer, Inc. shares on May 1, 2020.
- Realized gain or loss on sale of 1,600 Midas, Inc. shares on May 15, 2020.
- Total interest income for the year 2020.
- The amount to be recognized in the other comprehensive regarding the transfer of Discoverer bonds to FAFVTOCI.
- The amount of FAFVTPL and FAFVTOCI as of December 31, 2020 should be.
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