Please make it in good accounting form. 1. Arizona Company acquired a financial asset not held for trading during the last quarter of theyear 2020 and measured it at fair value through other comprehensive income. An analysis of theinvestment in equity securities showed the following:Dec. 29, 2020 Fair Value (determine theclosing prices at edge.pse.com.ph)SecurityNumber of sharesCost per shareJFCP226.201,500,0002,200,0003,000,0003,800,000DMCIP9.10ALIP49.90BDOP137.40Required:a) Prepare one compound entry to record the purchase of the investment in equity securities.b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31,2020 statement of other comprehensive income?

A) First to Calculate the Stock Value Stock Value = Number of Shares * Cost per Share JFC Stock…

1. Arizona Company acquired a financial asset not held for trading during the last quarter of the year 2020 and measured it at fair value through other comprehensive income. An analysis of the investment in equity securities showed the following: Security Number of shares Cost per share Dec. 29, 2020 Fair Value (determine the closing prices at edge.pse.com.ph) 1,500,000 2,200,000 3,000,000 3,800,000 JFC P226.20 DMCI P9.10 ALI P49.90 BDO P137.40 Required: a) Prepare one compound entry to record the purchase of the investment in equity securities. b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31, 2020 statement of other comprehensive income?

1. Arizona Company acquired a financial asset not held for trading during the last quarter of the year 2020 and measured it at fair value through other comprehensive income. An analysis of the investment in equity securities showed the following: Security Number of shares Cost per share Dec. 29, 2020 Fair Value (determine the closing prices at edge.pse.com.ph) 1,500,000 2,200,000 3,000,000 3,800,000 JFC P226.20 DMCI P9.10 ALI P49.90 BDO P137.40 Required: a) Prepare one compound entry to record the purchase of the investment in equity securities. b) What amount of unrealized loss or gain should be reported in Arizona Company's December 31, 2020 statement of other comprehensive income?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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1 During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as trading investments. In 2020, the entity appropriately reported an unrealized loss of 200,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2021 are: Security Cost Market A 600,000 700,000 B 450,000 400,000 C 800,000 900,000o What amount of unrealized gain on these securities should be included in the 2021 income statement? a. 350,000 b. 150,000 c. 550,000 d. 0
2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
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In 2019, Mickey Mouse Company purchased trading securities for P2,000,000. In the year ending 2019, Mickey Mouse recognized unrealized gain of 300,000.Below is the composition of the composition of the portfolio of trading securities in December 2020. security cost market a 400,000 700,000 b 850,000 1,000,000 c 750,000 500,000 What amount of unrealized gain or loss should be reported by Mickey Mouse Company in the year 2020?
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