Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm sorry if it's too many :(( pls, help me I need it so bad. I need journal entry requirements, it is sufficient to include

I'm sorry if it's too many :(( pls, help me I need it so bad. I need journal entry requirements, it is sufficient to include the account titles, parenthetical/mathematical/algebraic computations, and amounts.

1. On Dec. 27, 2020, ABC Corporation purchased 32,000 XYZ ordinary shares for P1.88 each. It paid a transaction fee of P600. ABC acquired it for trading purposes. On Dec. 31, 2020, the most recent trade price of the stock was at P1.91. What is the journal entry to be made on Dec. 31, 2020? 2. On January 1, 2020, ABC Retailer Corporation purchased 40,000 shares of Pi Rice Miller Inc. P40 each. During March 2020, 5% stock dividends were declared and distributed. The fair value of the stocks on dividend declaration date were P32 each. On June 1, 2020, the board declared property dividends of one kilogram of rice for every 500 shares held as of June 10, 2020. The dividends are to be distributed on June 25. A kilo of rice is valued at P38. What is the journal entry on June 25 if ABC plans to have the dividends as additional items to be sold in its store? You may show supporting solutions mathematically (not in good accounting form will be accepted.) 3.ABC received P200,000 cash in lieu of 2.5% stock dividend on its 500,000-share investment. The original cost and the fair value as of dividend declaration date of a share is P15 and P18 respectively. What is the journal entry based on the provided statements? 4.Alpha Corporation acquired 30,000 of SMC ordinary shares at P160 per share as a trading security. Subsequently, it received share rights that would allow him to subscribe for new shares at P150 per share for every five rights held. The market value of the share right on is P180. If the shareholder accounted the share rights separately and it exercised the stock rights, what journal entry would it make? You may show supporting solutions mathematically (not in good accounting form will be accepted.) 5.On April 30, 2020, ABC corporation had irrevocably designated its investment in Pi Corporation as a financial asset at fair value through other comprehensive income. The investment which is made up of 8,500 shares was originally purchased for P1,673,000 plus transaction cost of P17,000. At the end of the first and second years, the shares were selling at P190 and P210 respectively. On the third year, all of the shares were sold for P205 each. What is the compound journal entry to record the sale of the investment and update the relevant accounts? 6.ABC Corporation invested in 120,000 shares of X Corporation. It costed ABC a total cash outflow of P1,800,000. X Corporation subsequently announced a 1:3 share split down and a cash dividend of P0.26 per share. How much would ABC receive as total dividends?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Financial Markets And Institutions

Authors: Glen Arnold

1st Edition

0273730355, 9780273730354

More Books

Students also viewed these Accounting questions

Question

Summarize various training methods.

Answered: 1 week ago

Question

Explain the metrics for evaluating training and development.

Answered: 1 week ago

Question

Identify career planning approaches.

Answered: 1 week ago