Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which includes a P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Maid Company on March 20, 2021. These dividends were declared on January 5 payable to shareholders as of February 10. Maid shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2021. The investments were designated as FVPL. 6.1 How much is initial carrying value of investment at date of acquisition? 6.2 How much should be recognized as dividend income? 6.3 Prepare the all the journal entries for the period ended 12/31/2021

Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which includes a P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Maid Company on March 20, 2021. These dividends were declared on January 5 payable to shareholders as of February 10. Maid shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2021. The investments were designated as FVPL. 6.1 How much is initial carrying value of investment at date of acquisition? 6.2 How much should be recognized as dividend income? 6.3 Prepare the all the journal entries for the period ended 12/31/2021

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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