ount of P1,200. C -, and Neighborho alues per unit are 0x2. respectively. F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![2. On December 29, 20x1, Neighborhood Co. sells 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 Neighborhood collects the sale
price, on January 3, 20x2. The fair values per unit are P1.75 and P1.50 on
December 31, 20x1 and January 3, 20x2, respectively.
Requirements: Provide the journal entries under the (1) trade date
accounting and (2) settlement date accounting assuming the investment was
classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe133864b-a8b9-4b8e-80a8-81d279a525ab%2F0fbb85b5-be25-4eae-8193-9a77a53f2b53%2Fp8j5fsj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. On December 29, 20x1, Neighborhood Co. sells 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 Neighborhood collects the sale
price, on January 3, 20x2. The fair values per unit are P1.75 and P1.50 on
December 31, 20x1 and January 3, 20x2, respectively.
Requirements: Provide the journal entries under the (1) trade date
accounting and (2) settlement date accounting assuming the investment was
classified as: (a) FVPL; (b) FVOCI (mandatory); and (c) Amortized cost.
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