Question
On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL: SecurityPurchase priceTransaction costsFair value, Dec. 31, 2021 AP1,000,000P100,000P1,500,000 B2,000,000200,0002,400,000
On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL:
SecurityPurchase priceTransaction costsFair value, Dec. 31, 2021
AP1,000,000P100,000P1,500,000
B2,000,000200,0002,400,000
C4,000,000400,0004,700,000
On July 5, 2021, the entity sold Security C amounting to P5,200,000.
Requirements:
- Determine the unrealized gain/loss on December 31, 2021?
- Determine the net gain/loss reported on the income statement on December 31, 2021?
- What are the related journal entries?
- Assuming, the entity irrevocably designated it at FVOCI, how much is the unrealized gain/loss - FVOCI on December 31, 2021?
- Assuming, the entity irrevocably designated it at FVOCI, how much is the net gain/loss reported on the income statement on December 31, 2021?
- Assuming, the entity irrevocably designated it at FVOCI, what are the related journal entries?
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
