**Equity Securities Entries**McElroy Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date:| Investment Securities | Cost | Fair Value ||----------------------------------|--------|------------|| Horton, Inc. common (5,000 shares) | $215,000 | $200,000 || Monty, Inc. preferred (3,500 shares) | $133,000 | $140,000 || Oakwood Corp. common (1,000 shares) | $180,000 | $179,000 |On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of Patriot common stock were acquired at $54.50 per share on November 2, 2020. The December 31, 2020, fair values were Monty $106,000, Patriot $132,000, and Oakwood $193,000.**Instructions**Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020.

Equity refers to the ownership stake held by investors in a component (an organization, association,…

Answered: mentto 2) (Equity Securities Entries)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840 ) Equity investments @ fair value $26,620 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share. 3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend.…
Marcus Company has reported a total financial liability of P15,000,000 in its accounting records as of December 31, 2019 which include the following: A P3,000,000 face value perpetual bond that pays 5% interest each year A P2,000,000 redeemable preference share that will be redeemed by Marcus at a future date. A P1,500,000 redeemable preference shares redeemable at the option of the holder A P75,000 written call option that allows the holder to purchase a fixed number of ordinary shares of Marcus Company for a fixed amount. What is the correct amount of financial liability that should be reported by Marcus Company in its December 31, 2019 statement of financial position?
On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September 1, 2020, an additional 150,000 shares of ordinary shares were issued. In addition, VENUS Company had P 10,000,000 of 6% convertible bonds outstanding at December 31, 2019 which are convertible into 300,000 shares of ordinary shares. The carrying value of the bonds as of December 31,2019 and based on a rate of 8% is P 9,205,800. No bonds were converted into ordinary shares in 2020. The net income for the year ended December 31, 2020 was P3,750,000.Using 30% income tax rate, how much should be the diluted EPS to be presented by VENUS Company for the year ended December 31, 2020? (use 2 decimal places)
Larkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock which cost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $10,400 at the end of 2020. In 2021, Larkspur completed the following securities transactions. 1. On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160. 2. On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030. On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, the accounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur will not actively trade these securities because…
21. Israel Company’s stockholders’ equity account balances at December 31, 2019, were as follows: • Common stock, P8,000,000 • Additional paid-in capital, P1,500,000 • Retained earnings, P3,500,000 The following 2020 transactions and other information relating to the stockholders’ equity. accounts: • Israel had 500,000 authorized shares of P50 par common stock, of which 160,000 shares were issued and outstanding. • On March 5, 2020, Israel acquired 5,000 shares of its common stock for P100 per share to be held as treasury stock. The shares were originally issued at P80 per share. Israel uses the cost method to account for treasury stock. • On July 15, 2020, Israel declared and distributed a property dividend of inventory. The inventory had a P1,500,000 carrying value and a P1,000,000 fair market value. • Israel's net income for 2020 was P4,000,000. Israel Company should report total stockholder’s equity on December 31, 2020 at?
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On January 1, 2020 Excellence Company made various investments in trading securities with the following cost and market value on December 31, 2020: Cost 200,000 800,000 1,000,000 Market value One preference share Two ordinary share Three ordinary share 150,000 950,000 1,100,000 On January 20, 2021, the Two ordinary share is sold for P1,020,000. On December 31, 2021, the remaining trading securities have the following Market value: Market value One preference share Three ordinary share 200,000 1,070,000 Required: a.) Gain on sale on January 20, 2021 b.) Unrealized gain or loss be reported to the Income Statement for the Year- ended December 31, 2021
N1. Account
Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960 shares @ $ 14 each $ 13,440 Rogers Company 880 shares @ $ 20 each 17,600 Chance Company 520 shares @ $ 10 each 5,200 Equity investments @ cost 36,240 Fair value adjustment ( 7,300 ) Equity investments @ fair value $ 28,940 During 2020, the following transactions took place. 1. On March 1, Rogers Company paid a $ 2 per share dividend. 2. On April 30, Oriole, Inc. sold 320 shares of Chance Company for $ 11 per share. 3. On May 15, Oriole, Inc. purchased 100 more shares of Evers Company stock at $ 17 per share. 4. At December 31, 2020, the stocks had the following price per share values: Evers $ 18, Rogers $ 19, and Chance $ 9. During 2021, the following transactions took place. 5. On February 1, Oriole, Inc. sold the remaining Chance shares for $ 9 per share. 6. On March 1, Rogers Company paid a $ 2…
Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Security Co. M common shares FVTPL Co. N preferred shares FVTPL Co. P common shares Total Category 160,000 140,000 190,000 490,000 FVTOCI Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investmehts and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions.
Rahul bhaliya
Pecan Company has the following portfolio of investment securities at September 30, 2025, its last reporting date. Trading Securities Perry, Inc. common (12,000 shares) Platter, Inc. common (6,100 shares) Pokey Corp. preferred (1,000 shares) Cost $367,000 244,000 Date 94,000 Fair Value $351,000 248,000 On November 5, 2025, the Platter shares were sold at a price of $42 per share. In addition, 8,000 shares of Patriot common stock were acquired at $37 per share on November 26, 2025. The December 31, 2025, fair values were: Perry $348,000, Pokey $90,000, and the Patriot common $301,000. The Fair Value Adjustment account was at zero (0) as of September 30, 2025. 89,000 Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for…

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