Question 11 21 pts Problem 1 - Esau Corporation During your audit of Esau Corporation for the year 2021. you found the following postings to the FVPL account: Credit 20,000 1,000 28.000 Date Particulars Debit Purchased 10,000 Jan. preference shares of F P100,000 1 Company Jan. Purchased 1,000 54,000 3 shares of A Company Jan. Purchased 1,000 60,000 8 shares of B Company Feb. Cash dividends, F 28 Company Apr. Cash dividends, A 2 Company Apr. Sold 500 shares, A 5 Company Apr. Purchased 1,000 30,000 8 shares of C Company Purchased 1,000 36,000 shares of D Company July Purchased 200 shares, 33,000 15 Esau Company Purchased 500 shares 20,000 of E Company Aug. Sold 100 shares, Esau 15 Company Received 10% bonus Dec. issue from E 2,000 8 Corporation Dec. Cash dividend, C 10 Company 20,000 1,200 The following information was discovered from your audit procedures: The cash dividends received from A Company, pertains to dividends declared on December 28, 2020 to shareholders as of record on March 5, 2021. payable on April 2, 2021. The Esau Company purchased 200 of its own ordinary shares held by a deceased shareholder for P165 per share. 100 of these shares were sold at its 6/17 market price of P200 per share on August 15. . On December 8, 50 shares of E company were received, Esau credited dividend income equal to the market price of the shares received. On December 15, E Company declared a P5 cash dividend per share, payable on January 10, 2022 to shareholders of record as of December 28, 2021. No accrual has been made by Esau. The acquisition on January 1 represents 30% of the total shares of that class of F Company, the amount debited includes a transaction cost of P2 per share. F company reported a net income of P100,000 for the year 2021. The market price of the shares are as follows as of December 31, 2021: O A company P55 o B company 54 o C company 32 o D company 39 o E company 38 o F company 12 Question 1: What is the carrying amount of FVPL that should be presented in the statement of financial position as of December 31, 2021? Question 2: How much is the gain or loss on sale of FVPL? (Use negative sign if loss) Question 3: How much is the dividend income for 2021? Question 4: How much is the unrealized gain or loss taken to profit or loss for 2021? (Use negative sign if loss) Question 5: How much is the correct balance of the investment in associate as of December 31, 2021? Question 6: How much is the total amount taken to profit or loss for the year 2021? (Use negative sign if net loss) 7/17 Question 11 21 pts Problem 1 - Esau Corporation During your audit of Esau Corporation for the year 2021. you found the following postings to the FVPL account: Credit 20,000 1,000 28.000 Date Particulars Debit Purchased 10,000 Jan. preference shares of F P100,000 1 Company Jan. Purchased 1,000 54,000 3 shares of A Company Jan. Purchased 1,000 60,000 8 shares of B Company Feb. Cash dividends, F 28 Company Apr. Cash dividends, A 2 Company Apr. Sold 500 shares, A 5 Company Apr. Purchased 1,000 30,000 8 shares of C Company Purchased 1,000 36,000 shares of D Company July Purchased 200 shares, 33,000 15 Esau Company Purchased 500 shares 20,000 of E Company Aug. Sold 100 shares, Esau 15 Company Received 10% bonus Dec. issue from E 2,000 8 Corporation Dec. Cash dividend, C 10 Company 20,000 1,200 The following information was discovered from your audit procedures: The cash dividends received from A Company, pertains to dividends declared on December 28, 2020 to shareholders as of record on March 5, 2021. payable on April 2, 2021. The Esau Company purchased 200 of its own ordinary shares held by a deceased shareholder for P165 per share. 100 of these shares were sold at its 6/17 market price of P200 per share on August 15. . On December 8, 50 shares of E company were received, Esau credited dividend income equal to the market price of the shares received. On December 15, E Company declared a P5 cash dividend per share, payable on January 10, 2022 to shareholders of record as of December 28, 2021. No accrual has been made by Esau. The acquisition on January 1 represents 30% of the total shares of that class of F Company, the amount debited includes a transaction cost of P2 per share. F company reported a net income of P100,000 for the year 2021. The market price of the shares are as follows as of December 31, 2021: O A company P55 o B company 54 o C company 32 o D company 39 o E company 38 o F company 12 Question 1: What is the carrying amount of FVPL that should be presented in the statement of financial position as of December 31, 2021? Question 2: How much is the gain or loss on sale of FVPL? (Use negative sign if loss) Question 3: How much is the dividend income for 2021? Question 4: How much is the unrealized gain or loss taken to profit or loss for 2021? (Use negative sign if loss) Question 5: How much is the correct balance of the investment in associate as of December 31, 2021? Question 6: How much is the total amount taken to profit or loss for the year 2021? (Use negative sign if net loss) 7/17
