You are engaged to audit the equity investments held by KIWI COMPANY. In the conduct of...

Transcribed Image Text:

You are engaged to audit the equity investments held by KIWI COMPANY. In the conduct of the audit, you found the following transactions and other information for the year 2021. (a) The financial statements of the company for the year 2020 revealed the following investment balances: Financial Assets at Fair Value through Profit or Loss: Instrument Number of Shares 5,000 2,000 Prune's ordinary shares Date's ordinary shares Balance P 42,000 30,000 (b) You found that the December 31 balances approximated the fair values of the securities. (c) On April 3, Prune Company distributed 20% bonus issue. (d) On April 29, Date Company paid P5 cash dividend declared on March 30, 2021. (e) On May 15, Kiwi sold 1,000 of Prune's ordinary share at P10 per share. (f) On June 1, the Kiwi Company purchased at P12.50 per share 2,000 of Pomegranate Company ordinary share. Kiwi paid transfer taxes and commissions amounting to P1,250. The company exercised its option to designate Pomegranate shares as at fair value through other comprehensive income. (g) On October 1, Kiwi sold 500 of Date ordinary shares at P18.50 per share. (h) On December 1, Date declared P3 dividend per share on its ordinary share, payable on January 15 to shareholders of record on December 15, 2021. (i) Fair values on December 31, 2021 were as follows: Prune ordinary shares Date ordinary shares Pomegranate ordinary shares P11.00 17.50 14.00 Requirement: a. Prepare the working paper for the analysis of investment in equity securities for the year ended December 31, 2021. b. Based on the working paper produce, prepare a portion of statement of financial position to present the audited balances of equity investment. You are engaged to audit the equity investments held by KIWI COMPANY. In the conduct of the audit, you found the following transactions and other information for the year 2021. (a) The financial statements of the company for the year 2020 revealed the following investment balances: Financial Assets at Fair Value through Profit or Loss: Instrument Number of Shares 5,000 2,000 Prune's ordinary shares Date's ordinary shares Balance P 42,000 30,000 (b) You found that the December 31 balances approximated the fair values of the securities. (c) On April 3, Prune Company distributed 20% bonus issue. (d) On April 29, Date Company paid P5 cash dividend declared on March 30, 2021. (e) On May 15, Kiwi sold 1,000 of Prune's ordinary share at P10 per share. (f) On June 1, the Kiwi Company purchased at P12.50 per share 2,000 of Pomegranate Company ordinary share. Kiwi paid transfer taxes and commissions amounting to P1,250. The company exercised its option to designate Pomegranate shares as at fair value through other comprehensive income. (g) On October 1, Kiwi sold 500 of Date ordinary shares at P18.50 per share. (h) On December 1, Date declared P3 dividend per share on its ordinary share, payable on January 15 to shareholders of record on December 15, 2021. (i) Fair values on December 31, 2021 were as follows: Prune ordinary shares Date ordinary shares Pomegranate ordinary shares P11.00 17.50 14.00 Requirement: a. Prepare the working paper for the analysis of investment in equity securities for the year ended December 31, 2021. b. Based on the working paper produce, prepare a portion of statement of financial position to present the audited balances of equity investment.

Answer rating: 100% (QA)

a Working Paper for the Analysis of Investment in Equity Securities Prunes ordinary shares Cost 5000 ... View the full answer