During your audit of Company True for the year 2021, you found the following postings to the FVPL account:

The following information was discovered from your audit procedures:

•The cash dividends received from A Company, pertains to dividends declared on December 28, 2020 to shareholders as of record on March 5, 2021, payable on April 2, 2021.

• Company True purchased 200 of its own ordinary shares held by a deceased shareholder for P165 per share. 100 of these shares were sold at its market price of P200 per share on August 15.

•On December 8, 50 shares of E Company were received, Company True credited dividend income equal to the market price of the shares received.

•On December 15, E Company declared a P5 cash dividend per share, payable on January 10, 2022 to shareholders of record as of December 28, 2021. No accrual has been made by Company True.

• The acquisition on January 1 represents 30% of the total shares of that class of F Company, the amount debited includes a transaction cost of P2 per share. F company reported a net income of P100,000 for the year 2021.

•The market price of the shares are as follows as of December 31, 2021:

-A Company P55
-B Company P54
-C Company P32
-D Company P39
-E Company P38
-F Company P12

a. What is the carrying amount of FVPL that should be presented in the statement of financial position as of December 31, 2021?

b. How much is the gain or loss on sale of FVPL?

Question 3: How much is the dividend income for 2021? 

Question 4: How much is the unrealized gain or loss taken to profit or loss for 2021? (Use negative sign if loss) 

Question 5: How much is the correct balance of the investment in associate as of December 31, 2021? 

Question 6: How much is the total amount taken to profit or loss for the year 2021? (Use negative sign if net loss)
 

Transcribed Image Text:

Date Particulars Debit Credit Purchased 10,000 preference shares of F Company Jan. 1 P100,000 Purchased 1,000 shares of A Jan. 3 54,000 Company Purchased 1.000 shares of B Jan. 8 60,000 Company Feb. 28 Cash dividends, F Company 20,000 Apr. 2 Cash dividends, A Company 1,000 Apr. 5 Sold 500 shares, A Company 28,000 Purchased 1.000 shares of C Apr. 8 30,000 Company Purchased 1.000 shares of D 36,000 Company Purchased 200 shares, Esau Company July 15 33,000 Purchased 500 shares of E 20,000 Company Sold 100 shares, Esau Aug. 15 20,000 Company Received 10% bonus issue Dec. 8 2,000 from E Corporation Dec. 10 Cash dividend, C Company 1,200 Date Particulars Debit Credit Purchased 10,000 preference shares of F Company Jan. 1 P100,000 Purchased 1,000 shares of A Jan. 3 54,000 Company Purchased 1.000 shares of B Jan. 8 60,000 Company Feb. 28 Cash dividends, F Company 20,000 Apr. 2 Cash dividends, A Company 1,000 Apr. 5 Sold 500 shares, A Company 28,000 Purchased 1.000 shares of C Apr. 8 30,000 Company Purchased 1.000 shares of D 36,000 Company Purchased 200 shares, Esau Company July 15 33,000 Purchased 500 shares of E 20,000 Company Sold 100 shares, Esau Aug. 15 20,000 Company Received 10% bonus issue Dec. 8 2,000 from E Corporation Dec. 10 Cash dividend, C Company 1,200

Answer rating: 100% (QA)

1 Carrying amount of FVPL at Dec 31 2015 The carrying amount of FVPL is equal to the fair value of F... View the full answer