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Jan Company provided the following information: Inventory, January 1: Cost. 250,000 retail 385,000 Purchases: cost 1,535,000 retail 2,150,000 Freight in 35,000 Purchase return: cost. 12,500
Jan Company provided the following information: Inventory, January 1: Cost. 250,000 retail 385,000 Purchases: cost 1,535,000 retail 2,150,000 Freight in 35,000 Purchase return: cost. 12,500 retail 20,000 Purchase discount. 22,500 Employee Discount 3000 Normal spoilage 25,000 Sales 1,935,000 Sales allowance 10,000 Net Mark up 35,000 Net Markdown 170,000 Compute for the estimated ending inventory under Average Retail Inventory Method. 2. The following information was extracted from the December 31, 2020 statement of financial position of Ayos Company: Noncurrent assets: Financial assets at fair value 3,700,000 Equity: Unrealized loss on financial asset (300,000) The company paid transaction cost of P115,000 related to the acquisition of the investment in January 2020. The entity elected to measure the financial asset at fair value through other comprehensive income. What was the acquisition cost of the financial asset? 3. During 2020, Syempre Company made various investments in trading securities. On December 31, 2020, the investments had the following cost & market value: Cost. Market Sy Company ordinary share 500,000. 430,000 Em Company ordinary share 450,000. 500,000 Pre Company preference share 550,000 400,000 What amount should be included as unrealized loss in the statement of changes in equity? 4. On January 1, 2020, Hum Company purchased 10,000 ordinary shares of Yippy Company, P100 par for P750,000. On March 10, it received 20% stock dividend. The company exchanged 4,000 ordinary shares of Yippy for 8,000 preference shares. At the time of exchange, Yippy ordinary is selling at P80 while Yippy preference share is at P90. Compute for the gain/loss on exchange. 5-10. The securities owned by Survivor Company were held as permanent investments. During the current year, the following transactions occurred: Purchased 60,000 ordinary shares of Makapasa Company, at P30 per share. Received a 20% stock dividend from Makapasa Company. Received a cash dividend of P10 per share from Makapasa Company. The share of Makapasa Company was split up 3-for-1 basis. Purchased 40,000 ordinary shares of Makabangon Company, for P1,400,000. Makapasa Company offered shareholders rights to subscribe one share at P9 for every 5 shares held. On this date, the right has a market value of P2. Stock rights are accounted for separately. Exercised the 150,000 rights. Sold 60,000 rights at P3.50 per right. The remaining rights expired. Received a 10% cash dividend from Makabangon Company. Received a preference share dividend of 1 share for every 4 ordinary shares held of Makabangon Company. Ordinary share is selling ex-dividend at P43.75 and preference share is selling at P25. Sold 80,000 shares of Makapasa Company at P11 per share. Use FIFO approach. Prepare journal entries for the above transactions 5. Number of ordinary shares in Makapasa Company Balances of the following: 6. Investment in ordinary shares - Makapasa Company 7. Investment in ordinary shares - Makabangon Company 8. Investment in preference shares - Makabangon Company 9. Loss on Share Rights 10. Gain on sale of Investment
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