56. On July 1, 2023, TGV purchased 10,000 of BPO's 50,000outstanding shares at a price of P6.00 per share. BPOhad earnings of P3,000 per month during 2023 and paiddividends of P10,000 on Mar. 1, 2023 and P12,500 onDec. 1, 2023. The fair value of BPO's shares was P6.50per share on Dec. 31, 2023.Assuming that TGV accounts for its investment in BPOas a held-for-trading investment, what would be thetotal effect on TGV's profit or loss for the year endedDec. 31, 2023?a. P2,500b. P4,500c. P6,500d.P7,500

Under PFRS, Held for Trading investments are measured at their fair value on the Balance, and any…

Answered: On July 1, 2023, TGV purchased 10,000…

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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On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On March 1, XYZ sold an additional 500,000 shares on the open market at P20 per share. XYZ issued a 20% share dividend on May 1. On August 1, XYz purchased 280,000 shares and immediately retired the shares. On November 1, 400,000 shares were sold for P25 per share. What is the weighted-average number of shares outstanding for 2020?
On June 30, 2019, Haiti Company has 200,000 shares of P10 par ordinary share outstanding and the market price of the share is P12 per share. On the same date, the company declared a 1 for 2 share split. Immediately before the split, the total share premium was P900,000. What should be the balance in Haiti’s Share Premium account after the share split is effected?
on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.
On January 1, 2020, Dallas Company purchased 80,000 shares of Washington Company's $10 par common stock for $42 per share. During 2020, Washington paid total dividends of $600,000 and reported net income of $900,000. Washington stock was trading for $44 per share on December 31, 2020. During 2021, Washington paid total dividends of $100,000 and reported net loss of $300,000. Washington stock was trading for $40 per share on December 31, 2021. Instructions: a. Prepare all necessary journal entries for 2020 and 2021 if Washington has 800,000 shares of common stock outstanding. b. Prepare all necessary journal entries for 2019 and 2020 if Washington has 200,000 shares of common stock outstanding.
On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total Share premium was P1,500,000. What should be the balance in Funk Company’s Ordinary share account after the share split is effected? a. 25,000,000 b. 2,000,000 c. 20,000,000 d. 10,000,000
The share capital of Tarik Bhd as at 1 January 2018 consisted of 40000000 ordinary shares of RM 40000000. During the year, Tarik Bhd made the following transactions: 30 April 2018, Tarik Bhd bought back 10000000 of its shares from the open market at the prevailing market price of RM 8 per share. These shares were held as treasury shares. On 30 October 2018, Tarik Bhd sold 6000000 treasury shares in the open market price at an average price of RM 10 per share. In 2017, Tarik Bhd issued 4000000 units of warrants to bond holders that entitle the holders to subscribe for ordinary shares of the company. Each unit of warrant entitles its holder to one ordinary share at an exercise price of RM 6 per share. As at 31 December 2018, none of the warrants have been exercised. The average market price of Tarik Bhd’s ordinary shares for the year was RM 9 and this can be assumed as their fair value. The profit after tax for the year ended 31 December 2018 is RM 96000000. Calculate basic &…

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