Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,00 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: Prepare journal entries on December 31, 2020 and December 31, 2021.
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- Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 400,000 400,000 500,000 1,300,000 260,000 400,000 P Company R Company T Company Total 500,000 260,000 700,000 1,460,000 600,000 1,260,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company | Company Total 4,100,000 1,000,000 ´ 5,100,000 3,600,000 1,200,000 4,800,000 3,600,000 1,400,000 5,000,000 The net amount to be recognized in 2020 comprehensive income isPrepare journal entries on December 31, 2020 and December Splendid Company purchased equity securities during 2020 to The entity has elected irrevocably to present changes in fair be held as investments. The cost and market value of the Problem 15-3 (IAA) Proble Aborig statem investments are: December 31, 2020 Cost Market Trading securities Securities not held for trading 2,000,000 3,000,000 2,500,000 2,900,000 Noncu Financ Marke December 31, 2021 Trading securities Securities not held for trading 2,000,000 3,000,000 Marke 2,200,000 2,300,000 Othe The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election Unrea Required: An & follov Prepare journal entries for 2020 and 2021. XYZ АВС RST Problem 15-4 (IAA) Transitory Company acquired the following equity securities: December 31, 2020 Cost Market Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 On P2, On December 31, 2021 foll Moon Company…
- In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019Security A 1,500,000 120,000 1,800,000Security B 2,200,000 190,000 3,000,000Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.What amount of gain on sale should be received in the income statement for 2020? choices 800,000 500,000 300,000 0Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 400,000 P Company 500,000 260,000 400,000 R Company T Company Total 260,000 400,000 700,000 600,000 500,000 1,460,000 1,260,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company I Company Total 4,100,000 3,600,000 3,600,000 1,000,000 1,200,000 1,400,000 5,100,000 4,800,000 5,000,000 The net amount to be recognized in 2020 comprehensive income is P260,000 loss P240,000 gain P200,000 gain P 60,000 loss The net amount to be recognized in 2020 comprehensive income is P100,000 loss P40,000 gain P200,000 gain P260,000 lossPompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 P Company R Company T Company Total 500,000 260,000 700,000 1,460,000 260,000 400,000 600,000 1,260,000 400,000| 400,000 500,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 3,600,000 C Company | Company Total 4,100,000 1,000,000 5,100,000 1,200,000 4,800,000 3,600,000 1,400,000 5,000,000 The net unrealized gain/loss at December 31, 2020 in accumulated other comprehensive income in shareholders' equity is O P100.000 loss OP 40.000 gain P260,000 loss O P200,000 gain
- Pompey Inc. carries the following marketable equity securities on its books at December 31, 2019 and 2020. All securities were purchased during 2019.Trading Securities: Cost Fair Value 12/31/19 12/31/20 P Company 500,000 260,000 400,000 R Company 260,000 400,000 400,000 T Company 700,000 600,000 500,000 Total 1,460,000 1,260,000 1,300,000 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 C Company 4,100,000 3,600,000 3,600,000 I Company 1,000,000 1,200,000 1,400,000 Total 5,100,000 4,800,000 5,000,000 The net amount to be recognized in 2020 comprehensive income isOn January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL: Security Purchase price Transaction costs Fair value, Dec. 31, 2021 A P1,000,000 P100,000 P1,500,000 B 2,000,000 200,000 2,400,000 C 4,000,000 400,000 4,700,000 On July 5, 2021, the entity sold Security C amounting to P5,200,000. Requirements: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss reported on the income statement on December…company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے
- 1 July 2019 Gail Ltd acquired all issued shares of Ray Ltd for $90000. The Ray Ltd financial records show followings. Share capital 10000 @ 5 $50000 General Reserve 25000 Retained Earnings 15000 All assets and liabilities of Ray Ltd recorded at amount equal to fair value at that date. On January 2020, Ray Ltd transferred $ 5000 from general reserve existing at 1 July 2019 to retained earnings. a) Preapare pre-acquisition entries at 1 July 2019 b) Preapare pre-acquisition entries at 30 June 2020Problem 15-2 (IAA) On January 1, 2020, Spark Company purchased the following trading securities: Fair value Cost December 31, 2020 Aura Company ordinary Bora Company preference Cara Company bonds 600,000 350,000 500,000 650,000 200,000 400,000 On October 1, 2021, the entity sold one-half of Aura Company ordinary for P375,000. On December 31, 2021, the fair value of the remaining securities was P800,000. Required: Prepare journal entries to record the transactions.In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 security a 1,500,000 120,000 1,800,000 security b 2,200,000 190,000 3,000,000 security c 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.What amount of gain on sale should be received in the income statement for 2020?