On December 29, 20x1, ABC Co. sells 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. The investment has a carrying amount of P1,200. Ownership over the financial asset transfers to the buyer on January 3, 20x2. The fair values per unit on December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, respectively. Requirements: Provide the journal entries under the trade date ccounting and the settlement date accounting assuming the financial asset sold was classified as subsequently measured at: a. FVPL (held for trading securities), b. FVOCI (mandatory); and c. Amortized cost.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 29, 20x1, ABC Co. sells 1,000 units of an investment through a broker at P1.00 per unit, the quoted price on this date. The investment has a carrying amount of P1,200. Ownership over the financial asset transfers to the buyer on January 3, 20x2. The fair values per unit on December 31, 20x1 and January 3, 20x2 are P1.75 and P1.50, respectively.

Requirements: Provide the journal entries under the trade date ccounting and the settlement date accounting assuming the financial asset sold was classified as subsequently measured at:

a. FVPL (held for trading securities),

b. FVOCI (mandatory); and

c. Amortized cost.

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