On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur Corporation stocks at P48 per share, including P3 per share broker's fees and commissions. Arthur Corp. declared and paid P5 dividends per share to shareholders on December 20, 2021 and reported a net income of P2,240,000 for 2021 (earned evenly throughout the year). What is the balance of the investment in Arthur Corp. on December 31, 2021?
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- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.1. On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur Corporation stocks at P48 per share, including P3 per share broker's fees and commissions. Arthur Corp. declared and paid P5 dividends per share to shareholders on December 20, 2021 and reported a net income of P2,240,000 for 2021 (earned evenly throughout the year). What is the balance of the investment in Arthur Corp. on December 31, 2021?On January 1, 2021, MNO Company acquired 12,500 of the outstanding common shares of Esther Corporation stocks at P40 per share. Esther Corp. had a total of 62,500 shares outstanding on the same date. Esther Corp. declared total dividends of P20,000 to shareholders on December 20, 2021 and reported a net income of P150,000 for 2021. What is the amount of dividend income to be presented in profit or loss for the year ended December 31, 2021? 5.
- On January 1, 2021, PingPing Corp. acquired all the assets and liabilities of Willy Corp. by issuing shares of P10 par value ordinary shares. PingPing Corp. shares has a market value of P40 per share. The statement of financial position of Willy Corp. as of January 1, 2021, is as follows: Current assets – P640,000; Equipment – P1,760,000; Liabilities – P800,000; Common shares (P4 par) – P160,000; Share premium – P640,000; Retained earnings – P800,000. The current assets and equipment have fair values of P800,000 and P3,200,000, respectively. PinPing Corp. issued sufficient number of shares so that the fair market values of the shares issued is equal to the fair market value of Willy Corp.’s net assets. How many ordinary shares should PingPing Corp. must issue to have a gain on bargain purchase of P200,000? *... a. 85,000 shares b. 74,000 shares c. 75,000 shares d. 84,000 shares pls. answer it asap. thank you6. On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000 were also paid by PQR. A P5 dividend per share was declared by Frank, Inc. on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. What is the initial measurement of the investment in Frank, Inc.?3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8 Acquired 10,000 shares of ANCIENT ONE Inc. for P 1,000,000 paying additional P 20,000 for brokerage and another P 5,000 for commission. February 29 Received dividends from ANCIENT ONE Inc. declared January 3, 2020 to the stockholder of record January 31, 2020, P 20,000. On December 31, 2021 and 2022, the market value per share of the ANCIENT ONE stock is Php 95 and Php 120, respectively. Required: Prepare journal entries for each of the transactions enumerated above for 2021 and 2022, assuming: a. Investment in equity securities - FVPL b. Investment in equity securities - FVOCI
- On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expected to be able to sell this investment within a year at $28 per share. Dividends of $1 per share were declared and paid on August 1, 2021. On December 31, 2021, the fair value of each share was $23. What balance was shown in the investment account on JKJ's balance sheet on December 31 (year end)? $2,300 $2,400 $2,000 $2,800Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained earnings amounted to P3,000,000. In March 2021, the entity reacquired 50,000 treasure shares at P20 per share. How much should Retained Earnings be appropriated?P4. On December 31, 2021, the carrying amount of the investment is ABC Company purchased 25% of the ordinary shares of CBA Company. The investment in associate has a carrying amount of P1,000,000 at December 31, 2019. For years 2020-2023, CBA Company didi not declare any dividends. CBA Company reported the following results of operations: Profit/ (Loss) (3,000,000) 2020 2021 (1,500,000) 2022 500,000 2023 1,000,000
- Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income Dividends declared and paid Market price of common stock on 12/31/2021 Multiple Choice $2,081,200. What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee? $1,949,200. $220,000 66,000 $1,847,560. $ $ 26/shareSantol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained earnings amounted to P3,000,000. In March 2021, the entity reacquired 50,000 treasure shares at P20 per share. How much should be credited to Share capital upon issuance?Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400 shares of Angel Company. Further, assume that Angel has 260,000 total shares of stock issued. The book value and fair value of Angel's identifiable net assets were both $520,000 at January 1, 2021. The following information pertains to Angel during 2021: Net income $260,000 Dividends declared and paid $ 78,000 $ Market price of common stock on 12/31/2021 28/share What amount would Sacramento report in its year-end 2021 balance sheet for its investment in Angel? Multiple Choice $1,666,080. $1,960,400. $1,804,400. None of these answer choices are correct.