Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investmentsareCostMarketDecember 31, 2000Trading securities2.000.0002.500.000Securities not held for trading3.000.0002.500,000December 31, 2021Trading securities2.000.0002.200,000Securities not held for trading3,000.0002.300,000The securities not held for trading are measured at fair value through other comprehensive income by irevocable election.Requirement Complete the table below. Wrte zero (0) it is not applicable.December 31, 2019December 31, 2020December 31. 2021Statement of Financial PositionInvestments - FVPLInvestments - FVOCIStatement of Changes in EquityCther Comprehensive IncomeRetained earningsStatement of Comprehensive IncomeNet income - Unrealized gainloss)Net income Realized gainloss)Cther Comprehensive income-Unrealized gainloss)

Financial Management: Financial management comprises of two words i.e. Finance and management.…

Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and market value of the investments Cost Market December 31, 2000 Trading securties 2000.000 2.500.000 Securities not heid for trading 3.000.000 2.00.000 December 31, 2021 Trading securities 2000.000 2.200.000 Securities not heid for trading 3.000.000 2.300.000 The securties not heid for trading are measured at fair value through other comprehensive income by imevocabie election. Requirement Complete the table below. Write zero (0) eis not applicable. December 31. 2019 December 31. 2000 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FPVOCI Statement of Changes in Equity Cther Comprehensive income Retained eamings Statement of Comprehensive income Net income- Unvealized gainloss) Net income - Realized gainloss) Cher Comprehensive income- Unrealized gainoss)

Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and market value of the investments Cost Market December 31, 2000 Trading securties 2000.000 2.500.000 Securities not heid for trading 3.000.000 2.00.000 December 31, 2021 Trading securities 2000.000 2.200.000 Securities not heid for trading 3.000.000 2.300.000 The securties not heid for trading are measured at fair value through other comprehensive income by imevocabie election. Requirement Complete the table below. Write zero (0) eis not applicable. December 31. 2019 December 31. 2000 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FPVOCI Statement of Changes in Equity Cther Comprehensive income Retained eamings Statement of Comprehensive income Net income- Unvealized gainloss) Net income - Realized gainloss) Cher Comprehensive income- Unrealized gainoss)

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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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?
Why it uses Market Price as Carrying Amount?
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?
Topic: Gain or Loss on Sale of FVPL Question: Why Transaction was not deducted from the selling price when getting the Gain on Sale?
nit.9
Question 6: Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Category FVTPL Security Co. M common shares Co. N preferred shares Co. P common shares 160,000 140,000 190,000 490,000 FVTPL FVTOCI Total Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investments and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions. Round amounts to the nearest dollar. Show ALL calculations
• 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
Carpark Services began operations in 2001 and maintains investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these debt securities follows. Available-for-Sale Securities December 31, 20x1 December 31, 20x2 Cost $ 250,000 $ 340,000 Fair Value $ 251,000 $ 350,000 The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is: Debit Unvealed Gain-Equity $1000; Credit Fair Value Adjustment-Available for Sale $1.000 Debit Uzed Loss-Equity $1,000, Credit Fair Value Adjustment-Available-for-Sale $1.000 Detit Realized Loss-Income $1,000: Creat Fair Value Adjustment-Available for Sale $1,000 Debat Far Value Adjustment-Available for Sale $1.000 Credit Unrealized Loss-Equity $1,000
At December 31, 2020, the available-for-sale debt portfolio for Windsor, Inc. is as follows. Security Cost Fair Value UnrealizedGain (Loss) A $27,125 $23,250 $(3,875 ) B 19,375 21,700 2,325 C 35,650 39,525 3,875 Total $82,150 $84,475 2,325 Previous fair value adjustment balance—Dr. 620 Fair value adjustment—Dr. $1,705 On January 20, 2021, Windsor, Inc. sold security A for $23,405. The sale proceeds are net of brokerage fees. 1). Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. 2). Show the balance sheet presentation of the investment-related accounts at December 31, 2020
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Investment in Trading and AFS Securities A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. Income OCI 5,000 ✓ (1,000) * End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Fair value, end of 2022 Selling price, 2023 (2,000)✓ $ 5,000 x End of 2022 $ 2023 Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000)✓ 0…