Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market...
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Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2,900,000 December 31, 2021 Trading securities 2,000,000 2,200,000 Securities not held for trading 3,000,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election. Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments – FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings Transitory Company acquired the following equity securities: Cost Market December 31, 2020 Moon Company 200,000 120,000 Star Company 400,000 280,000 Sun Company 600,000 650,000 December 31, 2021 Moon Company 200,000 220,000 Star Company 400,000 300,000 Sun Company 600,000 580,000 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. Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments - FVOCI Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings Aborgine Company reported the following accounts in the Statement of Financial Position on January 1, 2020: Noncurrent assets 4,000,000 Financial asset – FVOCI (500,000) Market adjustment for unrealized loss 3,500,000 Market value Other comprehensive income Unrealized loss (500,000) An analysis of the investment portfolio revealed the following on December 31, 2020: Cost Market XYZ ordinary share 1,000,000 1,200,000 ABC ordinary share 2,500,000 2,000,000 RST preference share 500,000 200,000 4,000,000 3,400,000 On July 1, 2021, the ABC ordinary share was sold for P2,100,000. On December 31, 2021, the remaining investments have the following market value: XYZ ordinary share 1,000,000 RST preference share 150,000 Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments – FVOCI Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2,900,000 December 31, 2021 Trading securities 2,000,000 2,200,000 Securities not held for trading 3,000,000 2,300,000 The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election. Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments – FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings Transitory Company acquired the following equity securities: Cost Market December 31, 2020 Moon Company 200,000 120,000 Star Company 400,000 280,000 Sun Company 600,000 650,000 December 31, 2021 Moon Company 200,000 220,000 Star Company 400,000 300,000 Sun Company 600,000 580,000 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. Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments - FVOCI Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings Aborgine Company reported the following accounts in the Statement of Financial Position on January 1, 2020: Noncurrent assets 4,000,000 Financial asset – FVOCI (500,000) Market adjustment for unrealized loss 3,500,000 Market value Other comprehensive income Unrealized loss (500,000) An analysis of the investment portfolio revealed the following on December 31, 2020: Cost Market XYZ ordinary share 1,000,000 1,200,000 ABC ordinary share 2,500,000 2,000,000 RST preference share 500,000 200,000 4,000,000 3,400,000 On July 1, 2021, the ABC ordinary share was sold for P2,100,000. On December 31, 2021, the remaining investments have the following market value: XYZ ordinary share 1,000,000 RST preference share 150,000 Requirement: Complete the table below. Write zero (0) if it is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments – FVOCI Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings
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Related Book For
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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