What is the total interest and dividend income for 2018?
What amount should be reported as gain on sale of trading securities in 2018?
What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31, 2018?
What is the carrying amount of the remaining trading securities on December 31, 2018?
What is the gain or loss on the sale of the remaining Turkey bonds on February 1, 2019?
PRQBLEM 4: Supporting records of MAYON CORPORATION's trading securities portfolio show the following debt and equity securities: gecurity M Fair Value 200 ordinary shares Concave Co. P127,250 P121,500 P400,000 Tipo Co. 7% bonds 398,250 387,000 P600,000 Turkey Co. 7 172% 603.750 609.45 bonds Q Totals P1.12.2Q P1.117.9 L0 Interest dates on the bonds are January 1 and July 1. Mayon Corporation uses the income approach to record the purchase of bonds with accrued interest. During 2012 and 2013, Mayon completed the following transactions related to trading securities: 2012 January 1 Received semiannual interest on bonds. Assume that the appropriate adjusting entry made on December 31, 2011 April 1 Sold P300,000 of 7 %% Turkey bonds at 102 plus accrued interest. Brokerage fees were P1,000 May 1 Received dividend of P1.25 per share on the Concave ordinary share capital. The dividend had not been recorded on the declaration date. July 1 received semiannual interest on bonds and then sold the 7% Tipo bonds at 97 1:6. Brokerage fees were P1.250 August 15 purchased 100 shares of Newman, Inc. ordinary share capital at P580 per share plus brokerage fees of P250 November 1 Purchased P250,000 of 8% Toll Co. Bonds at 101 plus accrued interest. Brokerage fees were P625. Interest dates are January 1 and July 1 December 31 Market prices of securities were: Concave ordinary shares P550 7 56% Turkey bonds 101 3A 8% Toll bonds 101 Newman ordinary shares P583.75 2013 January 2 recorded the receipt of semiannual interest on bonds February 1 sold the remaining 7 %% Turkey bonds at 101 plus accrued interest. Brokerage fees were P1,500 1. What is the total interest and dividend income for 2012? A. P62,583 C.P45,708 B. P82.208 D. P49,402 2. What amount should be reported as gain on sale of trading securities in 2012? A. P2.025 C. P4,275 B. P6,376 D. P3,125 3. What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31, 2012? A. P10,600 unrealized gain C. P3,075 unrealized gain B. P10,600 unrealized loss D. P3,075 unrealized loss 4. What is the carrying amount of the remaining trading securities on December 31, 2012? A. P740500 C. P P736,725 B. P725225 D. P P726,125 5. What is the loss on the sale of the Turkey bonds on February 1. 2013
