On December 31, Year 1, Penthouse Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost of P150 per share and had a market value of P130 per share at December 31, Year 1. During Year 2, Penthouse acquired the following investments, all of which were designated as at fair value through other comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for 220 per share. At the end of Year 2, market values per share were: X – P140; Y – P170 and Z – P200. The adjusting entry on December 31, Year 2 would:
On December 31, Year 1, Penthouse Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost of P150 per share and had a market value of P130 per share at December 31, Year 1.
During Year 2, Penthouse acquired the following investments, all of which were designated as at fair value through other comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for 220 per share. At the end of Year 2, market values per share were: X – P140; Y – P170 and Z – P200.
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