- What is the unrealized gain (loss) reported in profit or loss for the year 2021?A. P31,000B. (P31,000)C. P43,000D. (P43,000)- How much was the gain or loss on the sale of CD shares?A. P1,100 gainB. P2,000 gainC. P15,000 lossD. P15,900 loss B. During 2021, Strawberry Corporation purchased several equity securities, all of which are designed as equityinvestments at fair value through profit or loss. The cost and market values at December 31, 2021 were as follows:SecurityAB Company ordinary (200 shares)CD Company ordinary (1,000 shares)EF Company ordinary (2,000 shares)CostP 28,000170,000315,000MarketP 34,000153,000295,000Appropriate valuation entry was made on December 31, 2021. On January 31, 2022, Strawberry Corporation sold1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes.On December 31, 2022, the market values of the ordinary shares of AB Company and EF Company were P150 andP153 per share, respectively.

There are three securities which has been purchased by the Strawberry corporation during the year…

Answered: What is the unrealized gain (loss)…

What is the unrealized gain (loss) reported in profit or loss for the year 2021? A. P31,000 B. (P31,000) C. P43,000 D. (P43,000) - How much was the gain or loss on the sale of CD shares?

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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Question

- What is the unrealized gain (loss) reported in profit or loss for the year 2021?
A. P31,000
B. (P31,000)
C. P43,000
D. (P43,000)

- How much was the gain or loss on the sale of CD shares?

A. P1,100 gain

B. P2,000 gain

C. P15,000 loss

D. P15,900 loss

B. During 2021, Strawberry Corporation purchased several equity securities, all of which are designed as equity
investments at fair value through profit or loss. The cost and market values at December 31, 2021 were as follows:
Security
AB Company ordinary (200 shares)
CD Company ordinary (1,000 shares)
EF Company ordinary (2,000 shares)
Cost
P 28,000
170,000
315,000
Market
P 34,000
153,000
295,000
Appropriate valuation entry was made on December 31, 2021. On January 31, 2022, Strawberry Corporation sold
1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes.
On December 31, 2022, the market values of the ordinary shares of AB Company and EF Company were P150 and
P153 per share, respectively.

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