In connection with your audit of the financial statements of the Beta Company for the year 2020, the following Available for Sale Securities and Dividend Income accounts were presented to you:

The following information was obtained during your examination:
a. From independent sources, you determine the following dividend information:

b. Closing market quotation as at December 31, 2020:
Bid P13.75 Asked P16.50
1. What is the balance of the unrealized gain or loss on AFS as of December 31, 2020?

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Available for Sale Securities Description Purchased 40,000 ordinary Date Debit Credit 1/8/2020 shares, par value P50, Gamma Co. P 1,560,000.00 3/30/2020 20,000 shares Gamma Co. received as stock dividend 1,000,000.00 4/3/2020 Sold 20,000 shares @P25 12/2/2020 Sold 8,000 shares @P60 500,000.00 480,000.00 Dividend Income Debit Description 3/30/2020 Stock dividend 8/30/2020 Gamma Company ordinary Date Credit 1,000,000.00 200,000.00 Available for Sale Securities Description Purchased 40,000 ordinary Date Debit Credit 1/8/2020 shares, par value P50, Gamma Co. P 1,560,000.00 3/30/2020 20,000 shares Gamma Co. received as stock dividend 1,000,000.00 4/3/2020 Sold 20,000 shares @P25 12/2/2020 Sold 8,000 shares @P60 500,000.00 480,000.00 Dividend Income Debit Description 3/30/2020 Stock dividend 8/30/2020 Gamma Company ordinary Date Credit 1,000,000.00 200,000.00

Answer rating: 100% (QA)

D14 A B D 1 particulars 2 purchased shares 3 stock dividend 4 total 5 sa... View the full answer