On December 29, 20x1, ABC Co. acquires 1,000 units of an 3. investment through a broker at P1.00 per unit, the quoted price on this date. Ownership over the financial asset transfers to ABC Co. on January 3, 20x2. The fair values December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, per unit on respectively. Requirements: Provide the journal entries under the trade date accounting and the settlement date accounting assuming the financial asset purchased is classified as subsequently measured at:
On December 29, 20x1, ABC Co. acquires 1,000 units of an 3. investment through a broker at P1.00 per unit, the quoted price on this date. Ownership over the financial asset transfers to ABC Co. on January 3, 20x2. The fair values December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, per unit on respectively. Requirements: Provide the journal entries under the trade date accounting and the settlement date accounting assuming the financial asset purchased is classified as subsequently measured at:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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