Jam Company bought the ordinary shares of Mad Company designated as equity securities at fair value through other comprehensive income, as follows: June 20,2019 – 1,000 shares for P 101,600 November 5,2019 – 3,000 shares at P 104 per share On January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June 14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 per share. Market values of Mad Company ordinary shares are as follows: December 31,2019 – P 106.70 per share December 31,2020 – P 96 per share

Jam Company bought the ordinary shares of Mad Company designated as equity securities at fair value through other comprehensive income, as follows: June 20,2019 – 1,000 shares for P 101,600 November 5,2019 – 3,000 shares at P 104 per share On January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June 14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 per share. Market values of Mad Company ordinary shares are as follows: December 31,2019 – P 106.70 per share December 31,2020 – P 96 per share

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

What is the revised carrying amount per share of Mad Company ordinary shares after the receipt of bonus issue on June 14,2020?.

Jam Company bought the ordinary shares of Mad Company designated as equity securities at
fair value through other comprehensive income, as follows:
June 20,2019 – 1,000 shares for P 101,600
November 5,2019 – 3,000 shares at P 104 per share
On January 25,2020, Jam Company received cash dividend of P 4.50 per share. On June
14,2020, it received a 10% bonus issue and on July 18,2020, Jam sold 1,500 shares at P 95 per
share.
Market values of Mad Company ordinary shares are as follows:
December 31,2019 – P 106.70 per share
December 31,2020 – P 96 per share

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