Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a share dividend of 2,000 on September 1, 2020, when the carrying value per on XYZ Corporation's books was P30 per share, and the market price is P33 per share. XYZ Corporation paid a cash dividend of P10 per share on October 31, 2020, declared on September 30, 2020, of record October 15, 2020. Requirement: 1. Prepare the necessary journal entries to record September 1, 2020, and October 31, 2020.

Q: On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s…

A: On 15.06.2021, LABAN company owns shares of GANGDULO company = 20000 shares Cost of purchase =…

Q: Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December…

A: Journal entryThe transactions that a company goes through in its day-to-day activities are recorded…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: Jake Company owns 20,000 shares of XYZ Corporation, representing 10% ownership. Jake received a…

A: SOLUTION- DIVIDEND INCOME- IT IS DEFINED AS THE DISTRIBUTION OF ENTITY PROPERTY TO ITS SHAREHOLDERS.…

Q: On January 1, 2021, KIND Company acquired 5,000 shares of FVOCI securities of OVERFLOW Company at…

A: There are three methods to recognize a financial asset as per IFRS 9. Fair value through profit…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

A: a) calculation of dividend income - SIKAP owns 10000 FVOCI shares which represent 10% of the total…

Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…

A: After the merger, the retained earnings of the acquired company become retained earnings of the…

Q: On June 1, 2022, Madison Corporation purchased 100,000 shares of Steller, Inc., common stock for…

A: When a company acquires another company by purchasing the majority of shares, in such case the…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ…

A: Solution: As shares are expected to be sold with in a year, therefore investment should be…

Q: On November 16, 2027, XYZ Company purchased 17,000 shares (representing 12%) of Company C stock for…

A: Unrealized losses are losses that have not yet been liquidated but whose value has decreased. When a…

Q: LEE Company had the following amounts in the shareholders’ equity on January 1, 2020: Preference…

A: Accumulated Profits are part of net income that is not distributed to the equity shareholders at the…

Q: vidends of $ 50,000. Assuming Ryan uses the equity method, at December 31. Gosling reported net…

A: Lets understand the basics.When one entity has 20%-50% holding of another entity then both are known…

Q: On January 1, 2021, Eoeo Company acquired 16,000 shares of Fofo Corporation for P1,500,000.…

A: When the company intents to keep the investment for a short period and has the intension to sell the…

Q: On December 31, 2020, R papa Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: An investment in other entity can be recorded using two methods; 1) Fair value method, and 2) Equity…

Q: ABC Co. purchased 10,000 shares (2% ownership) of DEF Co. on February 14, 2020. ABC Co. received a…

A: number of shares on hand as on the date of cash dividend -    shares purchased on 14Feb2020 = 10000…

Q: n January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of llagan…

A: Solution: Cost of investment = 10000*P70 = P700,000 Sale value of investment = 10000*P100 =…

Q: AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10…

A: Stockholders Equity (often recognized as Stakeholders Equity) seems to be a balance-sheet statement…

Q: On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The…

A: Unrealized gain or loss represents the change in the market value of the investment. For equity…

Q: On January 1, 2021, Sampson Co. purchased 100,000, representing 10% of Fraser's outstanding shares.…

A:

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Potsaid Company acquired 30% of the outstanding common stock of Buyuk Inc. on December 31, 2025. The…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: How much is the unrealized gain(loss) that should be presented in the statement of comprehensive…

A: The PINK Company purchased 50,000 shares (5% ownership) of another Company on January 2, 2020. PINK…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…

A: In case of a company the shareholders are the owners of the company.

Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

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: PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ₱34 per…

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: Gangnamn Inc owns 50% of Ps

A: An income statement is one of the financial statements which have to be prepared by the company at…

Q: On January 5, 2020, Swat Company declared a 15% share dividend. The market price of the entity’s…

A: Share dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: What amount should Billy record as share in income of JoeI for the year ended December 31, 2020?

A: Company gets the control over to another company by way of purchasing the shares of another company…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020…

A: When one company purchases the shares of another company then the profit and loss earned by the…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of the investment will be purchase cost of investment & expenses related…

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.