- ALM Company purchased shares from another entity as permanent investment. January 2, 2019 180,000 December...

Transcribed Image Text:

- ALM Company purchased shares from another entity as permanent investment. January 2, 2019 180,000 December 21, 2019 100,000 3,000 shares at P60 2,000 shares atP50 Transactions during the year 2020 May 15 Received cash dividend of P5 per share Dec 15 Received 20% share dividend Dec 28 Sold 2,000 shares at P55 per share. FIFO was used Required: Prepare the necessary Journal Entries for the above transaction. Exercise 2 - GAM Company provided the following chronological transactions: a. Purchased 50,000 ordinary shares of ALM company for P60 per share b. ALM Company shares are exchanged in 5-for-1 split c. Received a preference share dividend of 1 share for every 10 ordinary shares held. Ordinary shares are selling ex-dividends at P14, and preference share is selling at 10. d. Received a dividend in kind of 1 ordinary share of Bee Company, market price, P5 for every four ALM ordinary shares held e. Sold 75,000 shares of ALM at P15 per share. Required: Prepare the necessary journal entry for the above transaction. - ALM Company purchased shares from another entity as permanent investment. January 2, 2019 180,000 December 21, 2019 100,000 3,000 shares at P60 2,000 shares atP50 Transactions during the year 2020 May 15 Received cash dividend of P5 per share Dec 15 Received 20% share dividend Dec 28 Sold 2,000 shares at P55 per share. FIFO was used Required: Prepare the necessary Journal Entries for the above transaction. Exercise 2 - GAM Company provided the following chronological transactions: a. Purchased 50,000 ordinary shares of ALM company for P60 per share b. ALM Company shares are exchanged in 5-for-1 split c. Received a preference share dividend of 1 share for every 10 ordinary shares held. Ordinary shares are selling ex-dividends at P14, and preference share is selling at 10. d. Received a dividend in kind of 1 ordinary share of Bee Company, market price, P5 for every four ALM ordinary shares held e. Sold 75,000 shares of ALM at P15 per share. Required: Prepare the necessary journal entry for the above transaction.

Answer rating: 100% (QA)

ALM Company Journal Entries January 2 2019 Debit Investment ... View the full answer