question archive At December 31, 2017, Karen Company properly reported the following trading securities: Cost Market Value EA Corporation 1,000 preference shares Php 40,000 Php 30,000     DJA 6,000 ordinary share Php 60,000 Php 90,000 RVE 2,000 ordinary share Php 55,000 Php 80,000 During 2018, the following transactions occurred: ? January 5 - Acquired 8,000 shares of AR Company for Php 880,000 incurring an additional cost of Php 10,000 for brokerage and another Php 10,000 for commissions

At December 31, 2017, Karen Company properly reported the following trading securities: Cost Market Value EA Corporation 1,000 preference shares Php 40,000 Php 30,000     DJA 6,000 ordinary share Php 60,000 Php 90,000 RVE 2,000 ordinary share Php 55,000 Php 80,000 During 2018, the following transactions occurred: ? January 5 - Acquired 8,000 shares of AR Company for Php 880,000 incurring an additional cost of Php 10,000 for brokerage and another Php 10,000 for commissions

Subject:AccountingPrice: Bought3

At December 31, 2017, Karen Company properly reported the following trading securities:

Cost Market Value

EA Corporation 1,000 preference shares Php 40,000 Php 30,000

 

  DJA 6,000 ordinary share Php 60,000 Php 90,000

RVE 2,000 ordinary share Php 55,000 Php 80,000

During 2018, the following transactions occurred:

? January 5 - Acquired 8,000 shares of AR Company for Php 880,000 incurring an additional cost of Php 10,000 for brokerage and another Php 10,000 for commissions. These shares are to be initially recognized as trading securities

? February 14 - Received dividends from AR Company declared on January 10, 2018 at Php 16,000

? March 18 - Received dividends of Php 2/share from DJA Company

? November 15 - Sold 2,500 shares of DJA Company for Php 50,000. Commissions and taxes for Php 5,000 were paid for

the sale.

? December 15 - Recorded a transfer f all remaining DJA Company shares to FVTOCI when the fair value was Php 14.

On December 31, 2018, the following are the available market values per share:

? EA Corporation - Php 50

? DJA Company - Php 15

? RVE - Php 45

? AR Company - Php 100

Required: Based on the above, answer the following:

1. The correct cost of investment acquired on January 5.

2. The total dividend income during the year

3. The gain (loss) on sale of DJA Company

4. The unrealized gain (loss) and where do we present this unrealized gain (loss) at the end of the year

5. The total adjusted carrying value of the investment at the end of the year.

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