Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paraw Company bought the ordinary shares of Tides Company designated as equity securities t fair value through other comprehensive income, as follows: June 20, 2020-1,000

Paraw Company bought the ordinary shares of Tides Company designated as equity securities t fair value through other comprehensive income, as follows:

June 20, 2020-1,000 shares for P101,600

November 5, 2020- 3,000 shares at P104 per share

On January 25, 2021, Paraw Company received cash dividend of P4.50 per share.

On June 14, 2021, it received a 10% bonus issue and on July 18, 2021, Paraw sold 1,500 shares at P95 per share.

Market Values of Tides Company ordinary shares are as follows:

12/31/2020- P106.70 per share

4/7/2021 P96 per share

  1. At how much would the remaining equity securities be reported at December 31, 2021?
  2. At how much would the equity investment be reported at 12/31/2020?
  3. How much is the dividend revenue reported in Paraw's statement of comprehensive income for the year ended December 31, 2021?

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

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions

Question

1. Explain reasons for rules.

Answered: 1 week ago

Question

2. Find five metaphors for communication.

Answered: 1 week ago