You were engaged for the first time to audit WHITE Corporation's financial statements as of and for the period ended December 31, 2019. In the course of your audit, you were able to extract the ledger for its financial asset at fair value through profit or loss account, with the following transactions: Debit Credit Balance February 8, 2017 November 15, 2017 December 31, 2019 1,100,000 1,100,000 100,000 1,000,000 1,500,000 500,000 Audit notes: On February 8, 2017, WHITE purchased 100,000 shares of BLACK, Inc. for P10 per The shares represent 10% interest in BLACK, Inc. Broker's fees paid by WHITE total to P500,000, which was capitalized by the entity. On November 15, 2017, the company received P1 per share dividend, which was recorded as a credit to the investment account. In 2018 and 2019, the entity received P2 per share dividend, which were both correctly recorded as dividend income. The fair value of BLACK, Inc.'s shares as of December 31, 2017, December 31, 2018, and December 31, 2019, are P16, P12, and P15, respectively. Only in 2019 did the entity provide an entry for the change in fair value, debiting the investment account (as shown above) and crediting unrealized holding gain - profit/loss. share.

You were engaged for the first time to audit WHITE Corporation's financial statements as of and for the period ended December 31, 2019. In the course of your audit, you were able to extract the ledger for its financial asset at fair value through profit or loss account, with the following transactions: Debit Credit Balance February 8, 2017 November 15, 2017 December 31, 2019 1,100,000 1,100,000 100,000 1,000,000 1,500,000 500,000 Audit notes: On February 8, 2017, WHITE purchased 100,000 shares of BLACK, Inc. for P10 per The shares represent 10% interest in BLACK, Inc. Broker's fees paid by WHITE total to P500,000, which was capitalized by the entity. On November 15, 2017, the company received P1 per share dividend, which was recorded as a credit to the investment account. In 2018 and 2019, the entity received P2 per share dividend, which were both correctly recorded as dividend income. The fair value of BLACK, Inc.'s shares as of December 31, 2017, December 31, 2018, and December 31, 2019, are P16, P12, and P15, respectively. Only in 2019 did the entity provide an entry for the change in fair value, debiting the investment account (as shown above) and crediting unrealized holding gain - profit/loss. share.

Name: What is the overstatement or understatement in the beginning retained
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Description: What is the overstatement or understatement in the beginning retained earnings for 2019? 500,000 understatement200,000 understatement300,000 overstatement100,000 overstatement500,000 overstatement200,000 overstatement300,000 understatement100,000 und

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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