On December 29, 20x1, JALO Co. sold 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, and JALO collects the sale price, on Jan. 3, 20x2. The fair values per unit are P1.75 on December 31, 20x1 and P1.50 on Jan. 3 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized Cost.
On December 29, 20x1, JALO Co. sold 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, and JALO collects the sale price, on Jan. 3, 20x2. The fair values per unit are P1.75 on December 31, 20x1 and P1.50 on Jan. 3 20x2. Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized Cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 29, 20x1, JALO Co. sold 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, and JALO collects the sale price, on Jan. 3, 20x2. The fair values per unit are P1.75 on December 31, 20x1 and P1.50 on Jan. 3 20x2.
Requirements: Provide the journal entries under the (1) trade date accounting and (2) settlement date accounting assuming the investment is classified as:
(a) FVPL;
(b) FVOCI (mandatory); and
(c) Amortized Cost.
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