3. STRANGE Inc. has the following transactions relating to investments during 2021:January 8Acquired 10,000 shares of ANCIENT ONE Inc. for P 1,000,000 payingadditional P 20,000 for brokerage and another P 5,000 for commission.February 29 Received dividends from ANCIENT ONE Inc. declared January 3, 2020to the stockholder of record January 31, 2020, P 20,000.On December 31, 2021 and 2022, the market value per share of the ANCIENT ONEstock is Php 95 and Php 120, respectively.Required: Prepare journal entries for each of the transactions enumerated above for 2021and 2022, assuming:a. Investment in equity securities - FVPLb. Investment in equity securities - FVOCI

The journal entry is recording of transactions in the book of original entry by debiting and…

3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8 February 29 Acquired 10,000 shares of ANCIENT ONE Inc. for 1,000,000 paying additional 20,000 for brokerage and another 5,000 for commission. Received dividends from ANCIENT ONE Inc. declared January 3, 2020 to the stockholder of record January 31, 2020, ☞ 20,000. On December 31, 2021 and 2022, the market value per share of the ANCIENT ONE stock is Php 95 and Php 120, respectively. Required: Prepare journal entries for each of the transactions enumerated above for 2021 and 2022, assuming: a. Investment in equity securities - FVPL b. Investment in equity securities - FVOCI

3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8 February 29 Acquired 10,000 shares of ANCIENT ONE Inc. for 1,000,000 paying additional 20,000 for brokerage and another 5,000 for commission. Received dividends from ANCIENT ONE Inc. declared January 3, 2020 to the stockholder of record January 31, 2020, ☞ 20,000. On December 31, 2021 and 2022, the market value per share of the ANCIENT ONE stock is Php 95 and Php 120, respectively. Required: Prepare journal entries for each of the transactions enumerated above for 2021 and 2022, assuming: a. Investment in equity securities - FVPL b. Investment in equity securities - FVOCI

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
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