ary 1, 2020, Levesque Co. purchased 500,000 ordinar at P14 per share, representing a 25% ownership in Ro esque to exercise significant control over Rowland. Rowla idends of P1 and P2 in 2020 and 2021, respectively. At the owland's shares were trading at P15 and P17 per share. Ro 20 and 2021 was P2,400,000 and P3,200,000, respectively. rmine the investment income recognized by Levesque in 2020 rmine the carrvin
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- Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which includes a P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Maid Company on March 20, 2021. These dividends were declared on January 5 payable to shareholders as of February 10. Maid shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2021. The investments were designated as FVPL. 6.1 How much is initial carrying value of investment at date of acquisition? 6.2 How much should be recognized as dividend income? 6.3 Prepare the all the journal entries for the period ended 12/31/202136 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500 After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500.
- Question 5 On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P400,000 P200,000 P80,000 P280,000Problem 3 On January 1, 2021, CPA Co. acquired 15,000 ordinary shares out of 100,000 outstanding ordinary shares of PLDT Inc. for P300,000. The book value of the net asset of PLDT is the same with its fair value. During 2021, PLDT declared P2 per share cash dividend. The net income of PLDT for 2022 is P400,000. On January 1, 2022, CPA Co. acquired additional 5,000 ordinary shares of PLDT Inc. As a result, the cost method of accounting for investment should be replaced by the equity method on January 1, 2022. _2. What is the cumulative effect of this accounting change to January 1, 2022 Retained Earnings assuming income tax rate is 30%? Indicate whether debit or credit.Situation 1 Tamarisk Tables acquired 15% of the 5,100,000 shares of common stock of Robot Sofas at a total cost of $8.80 per share on April 1, 2020. On August 8, Robot Sofas declared and paid a $263,000 cash dividend. On December 31, Robot Sofas market price was $9 per share and the company reported net income of $743,000 for the year. The securities are classified as available-for-sale. Situation 2 On January 1, 2020, Vaughn Company purchased 40% of Santos Corporation 465,000 outstanding shares of common stock at a total cost of $13 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $934,000 for the year and the market price of its common stock was $14 per share. Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0…
- PART B On 1 July 2020, ABT Ltd had the following two equity accounts on its Balance sheet: Share Capital (6,000,000 shares) $30,000,000 Retained Earnings $17,000,000 The following events and transactions relate to ABT Ltd for the financial year ending 30 June 2021. 31/12/2020 ABT Ltd has been operating successfully and the current market price is $12 per share. On 31 December 2020, the company declared a 5% share dividend and $12 was the value assigned to the shares.The share dividend was distributed in January 2021. 20/01/2021 Issued the shares for the share dividend. 30/06/2021 For the financial year ending 30 June 2021, ABT Ltd recorded a profit after income tax of $15,000,000. On 30 June 2021, $2,000,000 was transferred from Retained Earnings to General Reserve to provide for future business expansion. 30/06/2021 Declared a final cash dividend of 30 cents per share. REQUIRED: Prepare the general journal entries relating…INVESTMENT IN ASSOCIATE Problem 7 On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company which represent a 25% interest in the in the net assets of Craze. The acquisition cost is equal to the carrying amount of the net assets acquired. Elite has the ability to exercise significant influence over Craze. Elite received a dividend of P35 per share from Craze in 2020. Craze reported net income of P9,600,000 for the year ended December 31, 2020. In the December 31, 2020 statement of financial position, what amount should be reported as investment in Craze Company? a. 22,150,000 b. 20,400,000 c. 18,650,000 d. 18,000,000 Problem 8 On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders. Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the…Situation 1 Riverbed Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $74,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $127,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2 Marin, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 31,300 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $36,600 to all stockholders. On December 31, Seles reported a net income of $80,100 for the year. Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
- A. At december 31 2019 Facebook company had 20,000 shares of P20 par value treasury shares wich were acquired at P24 per share.in May 2020, Facebook issued 15,000 of the treasury shares shares at P20 each .The cost method is used to record the treasury share transactions.At December 31,2020 what amount should Facebook show in notes to Financial statements as a restriction of retained earnings as a result of it's treasury share transaction? B. At the beginning of 2020, Tradewell Mktg.Corp.had retained earning of P5,000,000 throughout the year , the company had P20,000 shares of P100 par value ordinary shares that are issued and outstanding. During the year 2020, Tradewell Mktg.Corp. reported profit of 2,500,000 purchased a treasury shares of P750,000 declared a cash dividends of 2,000,000 reissued all treasury shares at a gain of P180,000 and declared and issued 500 shares as a bonus issue when the market value was P150 per share. C. What is the retained earning balance at december…Situation 2Pina, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 29,700 outstanding shares of common stock at a total cost of $ 10 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $ 33,000 to all stockholders. On December 31, Seles reported a net income of $ 79,200 for the year.Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) i cant figure out the Account Titles and Explanation1 On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500 ordinary shares. On this date, the net assets of Laco Co. totaled P9 million. The investment was classified as a financial asset at fair value through other comprehensive income. The fair values of Laco Co.’s identifiable assets and liabilities approximate their book values. On August 1, 2021, Normal received dividends of P4 per share from Laco Co. Fair value of the stocks on December 31, 2021 was P190. Net income reported by Laco for the year ended amounted to P1,500,000. On July 1, 2022, Normal Inc. paid P1 million to purchase 5,000 additional shares of Laco Co. from another shareholder. On this date the fair value of the net assets exceeds carrying value by P500,000 attributable to depreciable asset with estimated remaining life of 5 years. On February 1, 2022, cash dividends of P5 were received while dividends of P6 were received on August 1, 2022. Net income reported for the year…
