STRAWBERRY COMPANY has the following non-trading equity securities on December 31, 2016: Fair value Security Danica Co. ordinary shares Rose Corp. ordinary shares Assunta, Inc. preference shares 1,200 Shares 4,500 15,000 1,200 Cost P220,500 540,000 180,000 P207,000 525,000 184,800 Totals P940,500 P916,800 All of the above securities were bought in 2016. On initial recognition, Strawberry made an irrevocable election to present such securities at fair value through other comprehensive income. In 2017, the company had the following transactions relating to its investments: April 1 Sold the 4,500 ordinary shares of Danica Co. for P65 per share. May 1 Bought 2,100 ordinary shares of Rita Corp. at P75 plus broker's fee of P5,200. Strawberry's portfolio of non-trading equity securities appeared as follows on December 31, 2017: Security Shares Cost Fair value 525,000 Rose Corp. ordinary shares 15,000 540,000 Rita Corp. ordinary 2,100 157,500*** 151,200 shares Assunta, Inc. preference shares 1,200 180,000 174,000 Totals P877,500 850,200 ***The P5,200 broker's fee was recorded as expense. 34. The amount of gain or loss on the sale of Danica Co. ordinary shares to be reported in the 2017 income statement of Strawberry should be a. P72,000 gain b. P85,500 gain c. P85,500 loss d. PO 35. The 2,100 ordinary shares of Rita Corp. purchased on May 1, 2017, should be initially measured at a. P151,200 b. P156,400 c. P162,700 d. P157,500 36. Strawberry's December 31, 2017, statement of financial position should report investments in non-trading equity securities at a. P850,200 b. P877,500 c. P881,400 d. P916,800
STRAWBERRY COMPANY has the following non-trading equity securities on December 31, 2016: Fair value Security Danica Co. ordinary shares Rose Corp. ordinary shares Assunta, Inc. preference shares 1,200 Shares 4,500 15,000 1,200 Cost P220,500 540,000 180,000 P207,000 525,000 184,800 Totals P940,500 P916,800 All of the above securities were bought in 2016. On initial recognition, Strawberry made an irrevocable election to present such securities at fair value through other comprehensive income. In 2017, the company had the following transactions relating to its investments: April 1 Sold the 4,500 ordinary shares of Danica Co. for P65 per share. May 1 Bought 2,100 ordinary shares of Rita Corp. at P75 plus broker's fee of P5,200. Strawberry's portfolio of non-trading equity securities appeared as follows on December 31, 2017: Security Shares Cost Fair value 525,000 Rose Corp. ordinary shares 15,000 540,000 Rita Corp. ordinary 2,100 157,500*** 151,200 shares Assunta, Inc. preference shares 1,200 180,000 174,000 Totals P877,500 850,200 ***The P5,200 broker's fee was recorded as expense. 34. The amount of gain or loss on the sale of Danica Co. ordinary shares to be reported in the 2017 income statement of Strawberry should be a. P72,000 gain b. P85,500 gain c. P85,500 loss d. PO 35. The 2,100 ordinary shares of Rita Corp. purchased on May 1, 2017, should be initially measured at a. P151,200 b. P156,400 c. P162,700 d. P157,500 36. Strawberry's December 31, 2017, statement of financial position should report investments in non-trading equity securities at a. P850,200 b. P877,500 c. P881,400 d. P916,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:STRAWBERRY COMPANY has the following non-trading equity securities on December 31,
2016:
Fair value
Security
Danica Co. ordinary shares
Rose Corp. ordinary shares
Assunta, Inc. preference
shares 1,200
Shares
4,500
15,000
1,200
Cost
P220,500
540,000
180,000
P207,000
525,000
184,800
Totals
P940,500
P916,800
All of the above securities were bought in 2016. On initial recognition, Strawberry made an
irrevocable election to present such securities at fair value through other comprehensive
income. In 2017, the company had the following transactions relating to its investments:
April 1 Sold the 4,500 ordinary shares of Danica Co. for P65 per share.
May 1 Bought 2,100 ordinary shares of Rita Corp. at P75 plus broker's fee of P5,200.
Strawberry's portfolio of non-trading equity securities appeared as follows on December 31,
2017:
Security
Shares
Cost
Fair value
525,000
Rose Corp. ordinary
shares
15,000
540,000
Rita Corp. ordinary
2,100
157,500***
151,200
shares
Assunta, Inc. preference
shares
1,200
180,000
174,000
Totals
P877,500
850,200
***The P5,200 broker's fee was recorded as expense.
34. The amount of gain or loss on the sale of Danica Co. ordinary shares to be reported in the
2017 income statement of Strawberry should be
a. P72,000 gain
b. P85,500 gain
c. P85,500 loss
d. PO
35. The 2,100 ordinary shares of Rita Corp. purchased on May 1, 2017, should be initially
measured at
a. P151,200
b. P156,400
c. P162,700
d. P157,500
36. Strawberry's December 31, 2017, statement of financial position should report investments in
non-trading equity securities at
a. P850,200
b. P877,500
c. P881,400
d. P916,800
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education