Template Company provided the following with respect to marketable equity securities held as “trading”.

1. The entity carried the following securities on December 31, 2020:

A ordinary – 4,000 shares
B ordinary – 1,000 shares
C preference – 2,000 shares

2. On June 30, 2021, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2021, the securities are quoted as follows:

A ordinary – 4,000 shares
C preference – 2,000 shares

Requirement: Complete the table below. Write zero (0) if it is not applicable.

Market 300,000 160,000 310,000 770,000

Cost 330,000 200,000 300,000 830,000

P80 per
P180 per share

share

	December 31, 2019	December 31, 2020	December 31, 2021
Statement of Financial Position
Investments – FVPL
Statement of Changes in Equity
Retained earnings
Statement of Income
Unrealized gain/(loss)
Realized gain/(loss)

 

On January 1, 2020, lake Company purchased the following trading securities:

Aura Company ordinary Bora Company preference Cara Company bonds

Cost 600,000

350,000 500,000

Fair Value December 31, 2020

650,000 200,000 400,000

On October 1, 2021, the entity sold one-half of Aura Company for P375,000.
On December 31, 2021, the fair value of the remaining securities was P800,000. Requirement: Complete the table below. Write zero (0) if it is not applicable.

	December 31, 2019	December 31, 2020	December 31, 2021
Statement of Financial Position
Investments – FVPL
Statement of Changes in Equity
Retained earnings
Statement of Income
Unrealized gain/(loss)
Realized gain/(loss)

Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are:

December 31, 2020
Trading securities
Securities not held for trading

December 31, 2021
Trading securities
Securities not held for trading

Cost

2,000,000 3,000,000

2,000,000 3,000,000

Market

2,500,000 2,900,000

2,200,000 2,300,000

The securities not held for trading are measured at fair value through other comprehensive income by irrevocable election. Requirement: Complete the table below. Write zero (0) if it is not applicable.

	December 31, 2019	December 31, 2020	December 31, 2021
Statement of Financial Position
Investments – FVPL
Investments - FVOCI
Statement of Changes in Equity
Other Comprehensive Income
Retained earnings
Statement of Comprehensive Income
Net income - Unrealized gain/(loss)
Net income - Realized gain/(loss)
Other Comprehensive Income - Unrealized gain/(loss)

 

Transitory Company acquired the following equity securities:

December 31, 2020 Moon Company Star Company Sun Company

December 31, 2021 Moon Company Star Company Sun Company

Cost Market

200,000 120,000 400,000 280,000 600,000 650,000

200,000 220,000 400,000 300,000 600,000 580,000

The equity securities do not qualify as held for trading.
The entity has elected irrevocably to present changes in fair value in other comprehensive income. Requirement: Complete the table below. Write zero (0) if it is not applicable.

	January 1, 2020	December 31, 2020	December 31, 2021
Statement of Financial Position
Investments – FVOCI
Statement of Equity
Other Comprehensive Income
Retained earnings
Statement of Other Comprehensive Income
Unrealized gain / (loss)

Aborgine Company reported the following accounts in the Statement of Financial Position on January 1, 2020:

Noncurrent assets
Financial asset – FVOCI
Market adjustment for unrealized loss Market value

Other comprehensive income Unrealized loss

An analysis of the investment portfolio revealed the following on December 31, 2020:

4,000,000 (500,000) 3,500,000

(500,000)

Market 1,200,000 2,000,000

200,000 3,400,000

XYZ ordinary share ABC ordinary share RST preference share

Cost 1,000,000 2,500,000

500,000

4,000,000

On July 1, 2021, the ABC ordinary share was sold for P2,100,000.
On December 31, 2021, the remaining investments have the following market value:

XYZ ordinary share 1,000,000 RST preference share 150,000

Requirement: Complete the table below. Write zero (0) if it is not applicable.

	January 1, 2020	December 31, 2020	December 31, 2021
Statement of Financial Position
Investments – FVOCI
Statement of Equity
Other Comprehensive Income
Retained earnings
Statement of Other Comprehensive Income
Unrealized gain/(loss)

Answer rating: 100% (QA)

Aborgine Company The investmentFVOCI in January 2020 is already given so simply put the amount in correct column Unrealized gain and other comprehensive income in the statement of equity is the same s... View the full answer