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ANSWER ASAPPPPP During your audit of the financial statements of Crossroads Corporation for the year 2015, you found the following postings to FVPL (Financial Assets

ANSWER ASAPPPPP

During your audit of the financial statements of Crossroads Corporation for the year 2015, you found the following postings to FVPL (Financial Assets at Fair Value through Profit or Loss) account:

Trading Securities

Date

Description

Debit

Credit

Jan. 03

Purchased 1,000 shares, A Corporation

54,000

Jan. 08

Purchased 1,000 shares, B Corporation

60,000

Apr. 02

Cash dividends, A Corporation

1,000

Apr. 05

Sold 500 shares, A Corporation

28,000

Apr. 08

Purchased 1,000 shares, C Corporation

30,000

Apr. 08

Purchased 1,000 shares, D Corporation

36,000

Jul. 15

Purchased 200 shares, Crossroads Corporation

33,000

Jul. 15

Purchased 500 shares, E Corporation

20,000

Aug. 15

Sold 100 shares, Crossroads Corporation

20,000

Dec. 08

Received 10% bonus issue from E Corporation

2,000

Dec. 10

Cash dividend, C Corporation

1,200

The following information was discovered from your audit procedures:

  • Crossroads Corporation purchased 200 of its own shares held by a deceased shareholder at P165 per share. 100 of these shares were sold at its market price of P200 per share on August 15.
  • On December 8, 50 shares of E Corporation were received. Crossroads credited dividend income equal to the market price of the shares received.
  • On December 15, D Corporation declared a P5 cash dividend per share, payable on January 10, 2016 to shareholders of record as of December 29, 2015. No accrual has yet been taken up by Crossroads.
  • The market price of the share are as follows at December 31, 2015:

A Corporation

55

B Corporation

54

C Corporation

32

D Corporation

39

E Corporation

38

QUESTIONS: Based on the above date and result of the audit, compute the following:

  • Carrying amount of FVPL at December 31, 2015
  • Gain or loss on the sale of FVPL
  • Dividend Income
  • Unrealized gain or loss taken to gain

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