During your audit of the financial statements of Crossroads Corporation for the year 2015, you found the
Question:
During your audit of the financial statements of Crossroads Corporation for the year 2015, you found the following postings to FVPL (Financial Assets at Fair Value through Profit or Loss) account:
Trading Securities | ||||
Date | Description | Debit | Credit | |
Jan. 03 | Purchased 1,000 shares, A Corporation | 54,000 | ||
Jan. 08 | Purchased 1,000 shares, B Corporation | 60,000 | ||
Apr. 02 | Cash dividends, A Corporation | 1,000 | ||
Apr. 05 | Sold 500 shares, A Corporation | 28,000 | ||
Apr. 08 | Purchased 1,000 shares, C Corporation | 30,000 | ||
Apr. 08 | Purchased 1,000 shares, D Corporation | 36,000 | ||
Jul. 15 | Purchased 200 shares, Crossroads Corporation | 33,000 | ||
Jul. 15 | Purchased 500 shares, E Corporation | 20,000 | ||
Aug. 15 | Sold 100 shares, Crossroads Corporation | 20,000 | ||
Dec. 08 | Received 10% bonus issue from E Corporation | 2,000 | ||
Dec. 10 | Cash dividend, C Corporation | 1,200 |
The following information was discovered from your audit procedures:
- Crossroads Corporation purchased 200 of its own shares held by a deceased shareholder at 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 Corporation were received. Crossroads credited dividend income equal to the market price of the shares received.
- On December 15, D Corporation declared a P5 cash dividend per share, payable on January 10, 2016 to shareholders of record as of December 29, 2015. No accrual has yet been taken up by Crossroads.
- The market price of the share are as follows at December 31, 2015:
A Corporation | 55 |
B Corporation | 54 |
C Corporation | 32 |
D Corporation | 39 |
E Corporation | 38 |
QUESTIONS: Based on the above date and result of the audit, compute the following:
- Carrying amount of FVPL at December 31, 2015
- Gain or loss on the sale of FVPL
- Dividend Income
- Unrealized gain or loss taken to gain
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley