Year Cost Market Value Unrealized Gain / (Loss) 2020 GKKB P25,250 P23,350 (P1,900) ABC 32,450 33,950 1,500 2021 GKKB P25,250 P24,950 (P300) ABC 32,450 32,650 200 Question 7: The investment in stocks account is overstated or understated by? (Use negative sign if overstated)
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Year Cost Market Value Unrealized Gain / (Loss)
2020
GKKB P25,250 P23,350 (P1,900)
ABC 32,450 33,950 1,500
2021
GKKB P25,250 P24,950 (P300)
ABC 32,450 32,650 200
Question 7: The investment in stocks account is overstated or understated by? (Use negative sign if overstated)
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- Problem 5-7 (IAA) Bronze Company provided the following information at year-end: Share capital Share premium Cumulative translation adjustment - debit Treasury shares, at cost Retained earnings Cumulative unrealized gain on option contract designated as cash flow hedge 6,000,000 3,500,000 2,000,000 700,000 1,500,000 600,000 What is the shareholders' equity at year-end? a. 9,500,000 b. 8,900,000 c. 7,400,000 d. 7,500,000Case 2-1. Audit of investment in equity investments at foir volue through profit or loss; Substantive audit procedures. You were able to obtain the following iedger details of Equity investment-FVTPL in connection with your audit of the Strong Corporation for the year ended December 31, 2020: Credit Date Jan. 10 Particulars Purchase of Alpha Co. - 6,000 shares Debit P1,440,000 Feb. 20 Purchase of Beta Co. - 7,200 shares Sale of Beta Co. - 2,400 shares 1,800,000 Mar. 1 540,000 Receipt of Alpha share dividend- Offsetting Credit to retained earnings Sale of Alpha - 4,800 shares Sale of Alpha - 1,200 shares May 31 132,000 Aug. 15 Sept. 1 1,176,000 276,000 The following information was obtained during your examination: • Fram independent sources, you determine the follawing dividend information for Alpha Co. in 2020: Declared 01/02 0s/02 08/01 Record 01/15 05/15 Nature Cash Payment 01/31 Rate P20/share Share 05/31 10% Cash 08/30 09/15 P30/share • Closing market quotation as at December 31,…Investments in Stocks - This portfolio is composed of GKKB Company shares (GanyanKabaKatigasBash) and ABC Company shares. The shares were not held for trading and management has elected to designate the investments at fair value through other comprehensive income. Date Account Debit Credit May 3, 2020 Investment in GKKB Company 25,250 Broker's fee 1,000 Cash 26,250 To record the acquisition of GKKB shares and its related transaction cost Investment in ABC Company 32,450 Cash 32,450 To record the acquisition of ABC shares, acquired at P32.45 per share December 31, 2020 Unrealized Gain / (Loss) on market changes 400 Investment in ABC Company 1,500 Investment in GKKB Company 1,900 To record the market value adjustment for 2020 May 28, 2021 Investment in ABC Company 5,000 Dividend income 5,000…
- Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. O O $-7440. O $-20400. O $0. O $-130740. December 31, 2021 Cost O $23000 loss. O $14000 loss. - $0. O $9000 gain. $150000 Cash $296000 146000 Cash Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation? Debt Investments Premium on Bonds Cash Current Attempt in Progress Sunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10020 and $10380, respectively. Debt Investments Eair Value $127000…Investments in Stocks - This portfolio is composed of GKKB Company shares (GanyanKabaKatigasBash) and ABC Company shares. The shares were not held for trading and management has elected to designate the investments at fair value through other comprehensive income. Date Account Debit Credit May 3, 2020 Investment in GKKB Company 25,250 Broker's fee 1,000 Cash 26,250 To record the acquisition of GKKB shares and its related transaction cost Investment in ABC Company 32,450 Cash 32,450 To record the acquisition of ABC shares, acquired at P32.45 per share December 31, 2020 Unrealized Gain / (Loss) on market changes 400 Investment in ABC Company 1,500 Investment in GKKB Company 1,900 To record the market value adjustment for 2020 May 28, 2021 Investment in ABC Company 5,000 Dividend income 5,000 Received 100 shares of ABC Company in lieu of cash dividends of P5…Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
- INVESTMENT PORTFOLIO General Corporation has the following investments in equity securities at December 31, 2002 (there are no existing balances in the market adjustment account): Percentage of Shares Owned Market Price at 12/31/02 Company Classification Shares Cost Clarke Corporation Trading Available-for-sale 1,000 2% S75 S78 Marlin Company 4,000 15 34 32 Air Products, Inc. Available-for-sale 3,000 10 46 43 Required: 1. Prepare any adjusting entries required at December 31, 2002. 2. Illustrate how these investments would be presented on General Corporation's balance sheet at December 31, 2002. The available-for-sale securities are expected to be held for two to five years. 3. Prepare the journal entry on April 10, 2003, when General Corporation sold the Clarke Corporation investment for $72 per share. 4. Assume that General Corporation still owns its investment in Marlin Company and Air Products at December 31, 2003; the market prices on that date are $37 for Marlin and $44 for Air…Problem 15-11 (AICPA Adapted) At the beginning of current year, Manifold Company began operations. The following information related to the portfolio of equity securities held for trading at year-end: Trading Nontrading Aggregate cost Aggregate fair value Aggregate lower of cost or market value applied to each security in the portfolio 360,000 320,000 550,000 450,000 304,000 420,000 The nontrading investments are measured at fair value through other comprehensive income. What amount should be reported as unrealized loss in the income statement for the current year? 140,000 b. a. 186,000 40,000 56,000 с. d.ting Standards Sec-1 with B Shivakumar for Sem II 2021 C021-3/ Topic 3/ Quiz 2 Redemption of preference shares by a company is classified under investing activities of its cash flow statement Select one: of O True O False stion Next page page
- Problem 15-7 (ACP) Chaplain Company was very active in acquiring and selling investments in equity securities. Data regarding the securities are: Cost Market value December 31, 2020 Trading securities Securities not held for trading 5,000,000 3,000,000 4,600,000 3,100,000 December 31, 2021 Trading securities Securities not held for trading 5,000,000 3,000,000 5,500,000 3,300,000 The entity made an irrevocable 'election to present changes in fair value of the securities not held for trading in other comprehensive income. Required: Prepare journal entries to recognize the changes in market value for 2020 and 2021.Problem 1 (Adapted)The shareholders’ equity of Yelan Company showed the following account balances on December 31, 2018:Share capital, P100 5,000,000Share Premium 1,000,000Retained earnings 2,000,000Revaluation surplus 800,000 Compute the book value per share on December 31, 2018.4B. The following is the Summarized Balance Sheet of A Ltd. as at 31st March 2012. Particulars (1) Note. No (2) A Ltd (3) I. EQUITY AND LIABILITIES 1. Share holder’s Funds: a. Share Capital – (i) 8,000 Equity shares of Rs. 100 each b. Reserves and Surplus : General Reserve 8,00,000 80,000 2. Share Application Money Pending Allotment: ----- 3. Non –Current Liabilities : (i) 10 % debentures (ii) Loan from A 4,00,000 1,60,000 4. Current Liabilities: (i)Trade Payables – Trade Creditors 3,20,000 Total 17,60,000 (ii)Assets (i) Non – Current Assets: (a) Fixed Assets (i) Tangible Assets: Land and Buildings Machinery (ii) Intangible Assets – Goodwill 3,40,000 6,40,000 1,30,000 2. Current Assets: (a) Inventories (b) Trade Receivables (c) Other Current assets – Cash at Bank (d) Share issue Expenses 2,20,000 2,60,000 1,36,000 34,000 Total 17,60,000…