Problem 15-14 (AICPA Adapted) . On January 1, 2020, Jerome Company purchased nontrading equity investments which are irrevocably designated a FVOCI: Market value December 31, 2020 Purchase Transaction price cost Security A Security B Security C 1,000,000 2,000,000 4,000,000 100,000 200,000 400,000 1,500,000 2,400,000 4,700,000 On July 1, 2021, the entity sold Security C for P5,200,000. What amount of gain on sale should be recognized in th income statement for 2021? 800,000 b. 500,000 300,000 d. а. с.

Problem 15-14 (AICPA Adapted) . On January 1, 2020, Jerome Company purchased nontrading equity investments which are irrevocably designated a FVOCI: Market value December 31, 2020 Purchase Transaction price cost Security A Security B Security C 1,000,000 2,000,000 4,000,000 100,000 200,000 400,000 1,500,000 2,400,000 4,700,000 On July 1, 2021, the entity sold Security C for P5,200,000. What amount of gain on sale should be recognized in th income statement for 2021? 800,000 b. 500,000 300,000 d. а. с.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In 2019, Edward Company purchased equity securities as a trading investment. For the year ended December 31, 2019, the entity recognized an unrealized holding loss of P230,000. There were no security transactions during 2020. Pertinent information on December 31, 2020 is as follows: Security Cost Market Value A 2,450,000 2,300,000 B 1,800,000 1,820,000 4,250,000 4,120,000 In the 2020 income statement, what amount should be reported as unrealized holding gain or loss?
Problem 19: 56. On its December 31, 2020 balance sheet, Polo Company reported securities measured at fair value through other comprehensive income. These securities were acquired at a cost P360,000 and had a year-end fair value of P330,000. On December 31, 2021, the fair value of the securities was P350,000. What should Polo report as 2021 income or loss in the profit or loss statement as a result of the change in market value? Problem 20: Fastfoods Company acquired the following investments classified as trading securities on August 20, 2020: Jolibee shares KFC shares 400,000 250,000 300,000 P McDonald shares On December 31, 2020, the close of the year, these investments had the following market values: Jolibee shares KFC shares 450,000 220,000 310,000 McDonald shares 57. On February 23, 2021, Fastfoods company sold the KFC shares for P230,000. How much would berecognized as gain/ (loss) on sale of securities on the sale of the KFC shares as a component of other comprehensive income?
TOPICS: INVESTMENTS/DERIVATIVES O Company purchased a P 1 000 000 ordinary lifeinsurance policy on its president. O is the beneficiaryunder the life insurance policy. The policy year and theentity’s accounting year coincide. Additional dataavailable for the year ended December 31, 2021 are asfollows:Cash surrender value, January 1= 43 500 000Cash surrender value, December 31= 54 000 000Annual advance premium paid Jan 1= 20 000 000Dividend received July 1= 3 000 000 What amount should be reported as lifeinsurance expense for 2021? P Co. has maintained funds in Q Bank. Plan A adopted a plan to accumulateP 10 000 000 by September 1, 2030. Theentity plans to make four equal annualdeposits to a fund that will earn interestat 10% compounded annually. What isthe annual deposit to the fund? (round ofFV factors to three decimal places) Plan B has annual payments of P 500000. How much will it’s maturity be after10 years at 7% interest compoundedannually. Plan C has one time investment…
Orange LTD has the following investments at December 31, 2020; Fair value Historical cost Sept 30, 2019 $15,000 Fair value Sept 30, 2020 $25,000 Fair value Dec 31, 2020 $30,000 Shares of DEF Bonds of Brooke purchased at par value) Shares of CooksTown Shares of Tulip $25,000 10,000 12,000 18,000 12,000 18,000 16,500 11,000 16,000 19,500 12,500 16,000 20,500 Orange, whose year-end is Sept. 30, purchased the share of Tulip on January 1, 2019, If Orange irrevocably elected to classify its investment in Tulip at fair value through OCL what amount will be reported in other comprehensive income at September 30, 2020? $1,500 gain O $2,500 gain. et O $19,500 O $3,000 gain.
nit.9
TB MC Qu. 15-99 (Algo) Carpark Services... Carpark Services began operations in 20X1 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of debt securities follows. Available-for-Sale Securities December 31, 20X1 December 31, 20X2 Cost $ 340,000 $ 412,000 Multiple Choice Fair Value $ 344,600 $ 429, 200 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is: Debit Unrealized Gain - Equity $17,200; Credit Fair Value Adjustment - Available-for-Sale $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Loss - Equity $4,600; Credit Unrealized Gain - Equity, $8,000. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Gain - Equity, $17,200. Debit Fair Value Adjustment - Available-for-Sale $17,200; Credit Unrealized Loss - Equity $17,200. Debit Fair Value Adjustment - Available-for-Sale $12,600; Credit Unrealized Gain Equity $12,600.
• The following information is available for Alpha's investments: Fair Value Market Original Adjustment Value Investment Cost 12/31/2020 Classification 12/31/2021 Available for Beta bonds $80,000 $6,000 dr. $78,000 Sale Gamma bonds $60,000 $4,000 cr. Trading $66,000 The journal entries on 12/31/21 for Beta will include: O Debit to Unrealized Loss - OCI for $8,000 O Debit to Unrealized Loss - NI for $2,000 O Debit to Unrealized Loss - NI for $6,000 O Debit to Unrealized Loss - NI for $8,000
9
Topic: Investment Prepare all necessary entries and provide all financial statements
answer must be correct or i will give down vote
At December 31, 2024, Hull-Meyers Corporation had the following investments that were purchased during 2024, its first year of operations: Trading Securities: Amortized cost Fair Value Security A Totals Security B Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 960,000 165,000 $ 1,125,000 $760,000 960,000 $ 1,720,000 $ 550,000 675,000 $ 1,225,000 $ 975,000 159,400 $ 1,134,400 $ 834,000 977,400 $ 1,811,400 $ 561,200 669,800 $ 1,231,000 No investments were sold during 2024. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required: Complete the following table. Note: Amounts to be deducted should be indicated with a minus sign. Trading Securities Security A Security B Securities Available-for-Sale Security C Security D Securities to be Held-to- Answer is not complete. Reported on Balance Sheet as: Unrealized gain…
Ee.105.