On January 1, 2020 Excellence Company made various investments in trading securities with the following cost and market value on December 31, 2020: Market value One preference share Two ordinary share Three ordinary share Cost 200,000 800,000 1,000,000 150,000 950,000 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

On January 1, 2020 Excellence Company made various investments in trading securities with the following cost and market value on December 31, 2020: Market value One preference share Two ordinary share Three ordinary share Cost 200,000 800,000 1,000,000 150,000 950,000 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

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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A8
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