QUESTIONS: Based on the above date and result of the audit, compute the following: Dividend revenue for the year 2015 _________________ Unrealized gain or loss taken to profit or loss at December 31, 2015 A. 84,318 B. 175,000 C. 62,500 D. 184,318 Adjusted balance of the investment account at December 31, 2015 ______________
The Investments and Dividends Income accounts of Babe Time Company are shown below:
|
Trading Securities |
||||
|
Date |
Description |
Ref. |
Debit |
Credit |
|
06/22/14 |
5,000 ordinary shares, par value P100, Bebe Co. |
CD – 28 |
520,000 |
|
|
12/31/14 |
Adjustment to fair value |
|
80,000 |
|
|
05/31/15 |
500 shares Bebe Co. received as bonus issue |
GJ – 10 |
12,000 |
|
|
07/10/15 |
Sold 1,000 shares @ P130 net of transaction cost |
CR – 21 |
|
130,000 |
|
12/04/15 |
Sold 1,000 shares @ P140 |
CR – 40 |
|
140,000 |
|
Dividend Income |
||||
|
Date |
Description |
Ref. |
Debit |
Credit |
|
05/31/15 |
Bonus issue (stock dividend) |
GJ – 10 |
|
12,000 |
|
08/01/15 |
Cash dividend on Bebe Co ordinary shares |
CR – 22 |
|
22,500 |
The following information was obtained during your examination:
- The December 31, 2014
statement of financial position of Babe time Company showed, among current assets, Trading Securities of P600,000.
- You obtained the following information relating to dividends declared by Bebe Company.
|
Type of Dividend |
Date declared |
Date of record |
Date of payment |
Rate |
|
Share |
04/16/15 |
05/10/15 |
05/29/15 |
10% |
|
Cash |
06/16/15 |
07/16/16 |
07/31/15 |
P5 per share |
|
Cash |
12/10/15 |
12/28/15 |
01/16/16 |
P10 per share |
- Closing market quotation is P85 as at December 31, 2015.
QUESTIONS: Based on the above date and result of the audit, compute the following:
Dividend revenue for the year 2015 _________________
Unrealized gain or loss taken to profit or loss at December 31, 2015
|
A. |
84,318 |
|
B. |
175,000 |
|
C. |
62,500 |
|
D. |
184,318 |
Adjusted balance of the investment account at December 31, 2015 ______________
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