Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and market value of the investments Cost Market December 31, 2000 Trading securties 2000.000 2.500.000 Securities not heid for trading 3.000.000 2.00.000 December 31, 2021 Trading securities 2000.000 2.200.000 Securities not heid for trading 3.000.000 2.300.000 The securties not heid for trading are measured at fair value through other comprehensive income by imevocabie election. Requirement Complete the table below. Write zero (0) eis not applicable. December 31. 2019 December 31. 2000 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FPVOCI Statement of Changes in Equity Cther Comprehensive income Retained eamings Statement of Comprehensive income Net income- Unvealized gainloss) Net income - Realized gainloss) Cher Comprehensive income- Unrealized gainoss)
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- Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the Problem 15-3 (IAA) investments are: Probl Aborig statem December 31, 2020 Cost Trading securities Securities not held for trading Market 2,000,000 3,000,000 2,500,000 2,900,000 December 31, 2021 Noncu Trading securities Securities not held for trading Financ Marke 2,000,000 3,000,000 2,200,000 Marke 2,300,000 The securities not held for trading are measured at fair valun through other comprehensive income by irrevocable election Other Unres Required: An & follow Prepare journal entries for 2020 and 2021.Lopez Company purchased equity securities during 2020 to be held as Investment. The cost and Market Value of the investments are: December 31,2020. Cost. Market Trading Securities. 2,000,000. 2,500,000 Securities not held for trading. 3,000,000. 2,300,000 December 31,2021 Cost Market Trading Securities. 1,000,000 1,100,000 Securities not held for trading. 1,500,000. 1,450,000 On June 30 2021, half of the trading Securities were sold for 1,500,000 and securities not held for trading were sold for 1,100,000. The securities not held for trading are measured at fair value through other comprehensive income by election. REQUIRED: Prepare the Journal entries for 2020 and 2021Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2,900,000 December 31, 2021 Trading securities 2.000,000 2,200,000 Securities not held for trading 3,000,000 2,300,000 The securities not held for trading are measured at fair value through ather comprehensive income by irrevocable election. Requirement: Complete the table below. Wite zero (0) #R is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings
- Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 creditCan you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,0002. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
- At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, itsfirst year of operations:Cost Fair ValueTrading Securities:Security A $ 900,000 $ 910,000Security B 105,000 100,000Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale:Security C $ 700,000 $ 780,000Security D 900,000 915,000Totals $ 1,600,000 $ 1,695,000Securities to Be Held-to-Maturity:Security E $ 490,000 $ 500,000Security F 615,000 610,000Totals $ 1,105,000 $ 1,110,000No investments were sold during 2018. All securities except Security D and Security F are considered shortterminvestments. None of the fair value changes is considered permanent.Required:Determine the following amounts at December 31, 2018.1. Investments reported as current assets2. Investments reported as noncurrent assets3. Unrealized gain (or loss) component of income before taxes4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equity1 During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as trading investments. In 2020, the entity appropriately reported an unrealized loss of 200,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2021 are: Security Cost Market A 600,000 700,000 B 450,000 400,000 C 800,000 900,000o What amount of unrealized gain on these securities should be included in the 2021 income statement? a. 350,000 b. 150,000 c. 550,000 d. 0Glenn Company acquired equity securities during the year 2018 and designated as fair value to other comprehensive income. An analysis of the investments on December 31, 2020 showed the following:Securities Cost MarketA P 1,500,000 PI,400,000B 2,200,000 2,000,000C 3,000,000 2,900,000D 3,800,000 3,600.000Total 10,500,000 9,900,000If the Company's income tax rate is 35%, what amount of unrealized loss should be reported in Glenn's December 31, 2020 shareholders' equity? a. none b. 200,000 c. 390,000 d. 600,000
- During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 lossOn December 21, 2020, Zurich Company provided you with the following information regarding its trading investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Stargate Corp. shares $20,000 $19,000 $(1,000) Carolina Co. shares 10,000 9,000 (1,000) Vectorman Co. shares 20,000 20,600 600 Total of portfolio $50,000 $48,600 $(1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2021, Carolina Co. shares were sold for $9,500. The fair value of the shares on December 31, 2021, was Stargate Corp. shares—$19,300; Vectorman Co. shares—$20,500. Instructions a. Prepare the adjusting journal entry needed on December 31, 2020. b. Prepare the journal entry to record the sale of the Carolina Co. shares during 2021. c. Prepare the adjusting journal entry needed on December 31, 2021.On December 21, 2020, Buffalo Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $ 19,200 $ 18,300 $( 900 ) Colorado Co. stock 9,500 8,600 ( 900 ) Buffaloes Co. stock 19,200 19,800 600 Total of portfolio $ 47,900 $ 46,700 ( 1,200 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $( 1,200 ) During 2021, Colorado Co. stock was sold for $ 9,150. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$ 18,400; Buffaloes Co. stock—$ 19,690. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on…