On 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:                                                         

1. Determine the unrealized gain/loss on December 31, 2021?             
2. Determine the net gain/loss reported on the income statement on December 31, 2021?
3. What are the related journal entries?                            
4. Assuming, the entity irrevocably designated it at FVOCI, how much is the unrealized gain/loss - FVOCI on December 31, 2021?
5. Assuming, the entity irrevocably designated it at FVOCI, how much is the net gain/loss reported on the income statement on December 31, 2021?
6. Assuming, the entity irrevocably designated it at FVOCI, what are the related journal entries?

Answer rating: 100% (QA)

Jeremiah Company Trading Equity Investments Analysis 1 Unrealized GainLoss on December 31 2021 Security A Unrealized Gain Fair Value Purchase Price Tr... View the full answer