MD Corp. completed the following transactions relating to investment in AO Company ordinary sha which were acquired for trading purposes. 2018 (1) Purchased 1,000 shares at P150 per share, plus transaction costs of P3,750 (2) At year-end, the AO Company ordinary shares had a fair value of P180 per share. 2019 (1) Sold 500 of AO Company ordinary shares at P190 per share, incurring P1,000 transaction costs sale. (2) At year-end, the fair value of each share was P192.
Q: SOR-700 Inc. is a manufacturing company. It has received a special order for 6.000 units of its…
A: In case of special order acceptance or rejection, decision shall be made Variable Cost of…
Q: In this module, we learned about a corporation's dividends, retained earnings, and income reporting.…
A: A dividend is a payment made by a company to its qualified shareholders. The executive board of a…
Q: Modes of extinguishing obligations when creditor abandons his right to collect.
A: You have asked four different multiple choice question and as our guidelines are concerned we…
Q: Blank Slate Inc produces two types of tablet computers: a basic version and a high-end version.…
A: Under standard costing system, standards are fixed and the actual performance is compared with such…
Q: From the following information given in the Receipts and Payments Account, show relevant in the…
A: Subscription means the small amount to be paid by the member of society on regular basis so that…
Q: On January 1, 2021, Leslie Company lease an equipment from Lestor Company. Information relating to…
A: Leasing is to give the right to use assets for specified period by payment of certain amount of…
Q: Noora Company manufactures quality hair care product . The ingredients are combine in the mixing…
A: Equivalent units means number of units that is taken as completed for the calculation of cost per…
Q: 1.)They Company owns land and building classified as investment property . The land and building is…
A: Fair value gain for the year 2021 = Fair value of Investment property as on Dec 31, 2021 - Fair…
Q: On 1 January 2021 Bob Company sells an item of machinery to Jaison Company for its fair value of…
A:
Q: estimate of external funds require
A: Calculation of external funds required- ERF = (A/S - L/S) ∆S- MS1(1-D) A/S = Total assets/Sales L/S…
Q: ADIB has signed a Musharaka contract with ADIA ADIA provided 27 9% capital contribution in the…
A: Loss share of ADIA = Project loss x Profit sharing ratio of ADIA
Q: Account Title Cash Accounts Receivable Supplies Land Office Equipment Accumulated Depreciation…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…
A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…
Q: Exchange of Assets Ashton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated…
A: Book value of asset given = Cost - Accumulated depreciation = $30000 - $16000 = $14000
Q: are added after the Using the same data, inspection point, the inspection takes place when the units…
A:
Q: Good Company purchased a franchise on July 1, 2021 for the following considerations: The company…
A: Cost of franchise would the the fair value of share issued and present value of payment for note…
Q: The following selected accounts and their current balances appear in the ledger of Kanpur Co. for…
A: Net income is the excess of revenue over expenses during the specified period.
Q: JEY-7067 Inc. reported the following data for last year:
A: Residual Income = Net Operating Income - Average Operating Assets x Required Rate of return…
Q: Suppose the credit terms offered to your firm by your suppliers are 2/10, net 30 days. Out of…
A: Costly trade credit means the payments that are made after the end of discount period and paying…
Q: The cash budget for the first three quarters of the company is given below (000 omitted). The…
A: Quarter Total 1 2 3 Cash Balance, beginning $9 $5 $5 $9 Add - Collections $88 $126 $88…
Q: During the year 2019, Bright company acquired 10,000 ordinary shares of Bloom Company for P231,000…
A: Unrealized loss on equity investment is recognized in profit or loss for the year 2021 :- Bloom…
Q: Standard Cost most Category per 100 Two-Liter Bottles rect labor $1.20 rect materials 6.50 1.80…
A: The manufacturing costs comprise direct material, direct labor, and factory overhead. Total…
Q: She Company owns land and building classified as investment property . The land and building is…
A:
Q: Record the following entries in the appropriate journals for Marshall Trading Limited for the year…
A: Journal Entry :- The purpose of preparing the journal entry to segregate the transaction which are…
Q: a. Make all necessary journal for 2018 b. Make all necessary journal for 2019 and 2020 c. Determine…
A: As per Ind As 16 and IAS 16 Property plant and equipment - After recognizing an asset, PPE whose…
Q: estimated disposal cost of P50,000. On January 10, 2022, the asse cost to sell amounting to P35,000.…
A: In case of non-current assets, classified as held for sale the value of assets would be recorded as…
Q: used in manufacturing a product. ofessional fees paid to consultants to conduct market study-----P…
A: Research & Development expense- The costs incurred in developing new products or processes are…
Q: On January 2021 Bob Company sells an item of machinery to Jaison Company for its fair value of…
A:
Q: A machine that cost $24,000 and on which $2,000 of Accumulated Depreciation has been recorded was…
A: Lets understand the basics. Journal entry is required to record the financial event or transaction…
Q: The average of the stockholder's equity was not computed, factored in, nor explained.
A: The average of the stockholder's equity is calculated by taking the average of the current year and…
Q: Intermediate accounting 1 (Tutorial #2) 1) On May 31, 2014, ABC Company had a cash balance per books…
A: Introduction Bank reconciliation is a process of matching the balances in the books of account with…
Q: The board of directors of Smith Enterprises announced a dividend of P1.75 per share on August 2. The…
A: The dividend is paid to shareholders from the retained earnings of the business.
Q: Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. Name…
A: Tax liability: Tax obligation refers to the amount of money that is owing to a federal, state, or…
Q: You Company owns land and building classified as investment property . The land and building is…
A: When company owns land and building classified as investment property and company uses the fair…
Q: The following information describes a company's direct labor usage in a recent period. 72,000 15…
A: Direct labor rate variance occurs due to the difference between the actual rate paid to labors and…
Q: Ramos Inc. has total assets of $1,000 and total liabilities of $450 on December 31, 20Y8. Assume…
A: Solution Accounting equation is expressed as asset = liabilities + equity The sum of liabilities and…
Q: Accounts Payable $580 Fees Earned $2,690 Accounts Receivable 621 Insurance Expense 600 Prepaid…
A: Introduction: Trial balance: All the final ledger accounts balances are posted in trial balance to…
Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…
A: Where shares are held as investments for short-term (current assets), the shares are recorded at…
Q: Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence…
A: Solution: When acquistion did not result into significant influence over investee company,…
Q: An entity reported the following assets and liabilities at year-end: Carrying amount Tax…
A: Deferred Tax Liability A liability for paying the taxes in the future is denoted by Deferred tax…
Q: Equipment with a sales price of $100,000 is purchased at a discount of 10% by Aaron Company. At what…
A: Fixed assets should be recorded at the total cost incurred to bring the asset ready to use. It…
Q: SHE CO. currently has annual sales of P2,000,000. Its average collection period is 40 days, and bad…
A: When the average receivables and the per-unit cost to selling price ratio are multiplied the net…
Q: Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and…
A: Calculation of predetermined Variable overhead rate :-
Q: 40% for business purposes at his trading store Menlyn Mowbray’s costs for in relation to this…
A: Taxable income is the portion of an income of individual , firm , company that would have pay to…
Q: What journal entry should be made to reflect the issuance of a $3,000 note to a creditor who has…
A: The issue is a journal entry that records the issuing of a $3,000 note to a customer. creditor who…
Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…
A: It is pertinent to note that securities held for trading purposes are measured at fair value through…
Q: processing costs up to the split-off point total $75,000 per quarter. The company allocates these…
A: The decision of further processing of joint products is based in incremental analysis. If the…
Q: When choosing whether to make, lease, or buy, a manager must consider the profits to be made under…
A: Management decision-making can be of various types. It can make or buy decisions, purchase or lease,…
Q: 21, Pak ordinary shares are selling at P180/share. [ 5/share incurring P2,000 transaction costs on…
A: Solution calculation of gain on sale of shares Cost of shares = (1000 x 150) + 4,000 = 154,000 Now…
Q: Corrective action has been taken by an auditee immediately after the identification of a reportable…
A: Auditors may come across various errors which they may refer to the management. Management also…
How much should be reported in the 2019 Profit or Loss?
Step by step
Solved in 2 steps
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossZ Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive incomeOn 1 July 2019, Brad Ltd acquired all assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100,000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1,000. Legal cost associated with the acquisition of Pitt Ltd amounted to $1,200.The assets and liabilities of Pitt Ltd at 1 July 2019 were as follows:Carrying Amount ($) Fair Value ($)AssetsCash 2,000 2,000Accounts receivable 10,000 10,000Inventory 64,000 68,000Equipment 320,000 232,000Accumulated depn - Equipment (96,000) -Patents 280,000 280,000LiabilitiesAccounts payable (16,000) (16,000)Debentures (64,000) (64,000)Required:a) Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.b) Prepare the journal entries in the records of Brad Ltd at 1 July 2019.
- Jen COMPANY completed the following transactions in relation to its long-term investments in Jisoo Company. On January 1, 2019, Jen Company purchased 20,000 shares of Jisoo Company, P100 par, at P110 per share. This was debited to the investment account. On March 1, 2019, Jisoo Company issued rights to Jen Company, each permitting the purchase of 1/4 share at par. No entry was made. The bid price of the share was 140 and there was no quoted price for the rights. Jen Company was advised that it would “lose out on the investment if it did not pay in the money for the rights.” Thus, on April 1, 2019, Jen Company paid for the new shares charging the payment to the investment account. Since Jen Company felt that it had been assessed by Jisoo Company, the dividends received from Jisoo Company in 2019 and 2020 (10% on December each year) are credited to the investment account until the debit was fully offset. On January 1, 2021, Jen Company received 50% stock dividend from Jisoo Company. On…On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expected to be able to sell this investment within a year at $28 per share. Dividends of $1 per share were declared and paid on August 1, 2021. On December 31, 2021, the fair value of each share was $23. What balance was shown in the investment account on JKJ's balance sheet on December 31 (year end)? $2,300 $2,400 $2,000 $2,800On 1 July 2019, BPL Ltd acquired all of the assets and liabilities of HTC Ltd. In exchange for these assets and liabilities, BPL Ltd issued 100 000 shares that at date of issue had a fair value of $4.95 per share. Costs of issuing these shares amounted to $1050. Legal costs associated with the acquisition of HTC Ltd amounted to $1520. The asset and liabilities of HTC Ltd at 1 July 2019 were as follows: Carrying amountFair value Assets: Cash$12 000$20 000 Accounts receivable10 50012 000 Inventory64 00071 000 Equipment 320 000239 000 Accumulated depreciation – equipment(96 000)— Patents240 000270 000 Liabilities: Accounts payable(16 000)(20 000) Debentures(64 000)(69 000) REQUIRED: a. Prepare the acquisition analysis at 1 July 2019 for the acquisition of HTC Ltd by BPL Ltd.
- On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000. A P5 dividend per share of Jasper had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. No other transactions occurred in 2020 affecting the investment in Jasper's share. What is the initial measurement of the investment?Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2021. During 2021, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000. If Blanco Company used the fair value method of accounting for its investment in Darby Company, its Equity Investments (Darby) account on December 31, 2021 should be: a. $580,000 b. $660,000 c. $600,000 d. $680,000 If Blanco Company uses the equity method of accounting for its investment in Darby Company, its Equity Investments (Darby) account at December 31, 2021 should be: a. $580,000 b. $600,000 c. $660,000 d. $680,000On 1 July 2019, Brad Ltd acquired all of the assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100 000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Pitt Ltd amounted to $1200. The asset and liabilities of Pitt Ltd at 1 July 2019 were as follows: Carrying amount Fair value Assets $ 2000 10000 64 000 320 000 $ 2000 10000 Cash Accounts receivable 68 000 232 000 Inventories Equipment Accumulated depreciation – equipment (96 000) 240 000 Patents 280 000 Liabilities (16 000) (64 000) Accounts payable (16000) (64 000) Debentures Required (a) Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.
- Marcus Company made the following transactions in the ordinary shares of Cato Company designated as a financial asset at fair value through profit or loss: July 16, 2018 - Purchased 10,000 shares at P45 per share. | June 28, 2019- Sold 2,000 shares for P51 per share. May 18, 2020 - Sold 2,500 shares for P33 per share. The end-of-year market prices for the shares were as follows: December 31, 2018 - P47 per share December 31, 2019 - P39 per share December 31, 2020 - P31 per share 1. How much should be recognized in 2020 profit or loss as a result of the fair value changes? (use negative sign if your answer is a loss) 2. How much should be recognized as realized gain on sale for the year ended December 31, 2020? (use negative sign if your answer is a loss) 1. 2.Question: The total amount reported in 2019 profit or loss is? On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest for P2,500,000. The entity elected to measure the investment at FVOCI. The investee reported net income of P3,000,000 and paid dividends of P15 per share in 2019. The fair value of the investment was P2.800.000 on December 31, 2019. On January 1, 2020, the entity paid P3,000,000 for 16.250 additional shares of the investee. The fair value of the 12% interest did not change on this date. The fair values of the identifiable net assets of the investee equal carrying amount of P15,000,000 on such date except for land whose fair value exceeded carrying amount by P3,000,000. For the year ended December 31, 2020, the investee reported net income of P6,000,000 and paid dividends of P20 per share.Marcus Company made the following transactions in the ordinary shares of Cato Company designated as a financial asset at fair value through profit or loss: July 16, 2018- Purchased 10,000 shares at P45 per share. nces June 28, 2019 - Sold 2,000 shares for P51 per share. ations May 18, 2020 - Sold 2,500 shares for P33 per share. The end-of-year market prices for the shares were as follows: December 31, 2018 - P47 per share December 31, 2019 P39 per share December 31, 2020 P31 per share 1. How much should be recognized in 2020 profit or loss as a result of the fair value changes? (use negative sign if your answer is a loss) 2. How much should be recognized as realized gain on sale for the year ended December 31, 2020? (use negative sign if your answer is a loss) 1 2)