User Account

All Pages

Compute for the gain on exchange to be recognized

Assignment Help Financial Accounting
Reference no: EM132630647

Exchange of One Financial Asset into Another Financial Asset

Uranus Company owns 8,000 convertible preference shares of which was acquired in 2017 at a cost of P400,000. The investment was classified as trading securities. On December 31, 2017, the fair value of the preference shares was P425,000. On March 31, 2018, Uranus Company converted the 4,000 preference shares into 6,000 shares of ordinary shares, when the market price was P50 per share for the preference shares and P40 per share for the ordinary shares.

Question 1: Compute for the gain on exchange to be recognized in 2018.

Question 2: Give the journal entry on March 31, 2018.

Reference no: EM132630647

Questions Cloud

Will companies with large holdings of dodgy : Will companies with large holdings of dodgy financial instruments be motivated to disclose information about those instruments?
Are Josie sales subject to Oklahoma corporate income tax : During a typical sales call, Josie takes the customers' current orders for phones, cases, Are Josie's sales subject to the Oklahoma corporate income tax
How do compute for the gain on exchange to be recognized : Exchange of a PPE for a Financial Asset, How do Compute for the gain on exchange to be recognized in 2018. Provide the journal entry on March 31.
Problem - Can You Be a Nowhere Adviser : Problem - Can You Be a Nowhere Adviser? Is it ethical for a tax adviser to suggest such a strategy
Compute for the gain on exchange to be recognized : Uranus Company owns 8,000 convertible preference shares, Compute for the gain on exchange to be recognized in 2018. Give the journal entry on March 31, 2018.
What should be the rate of impact fees assessed : What should be the rate of "impact fees" assessed on new developments? Does your analysis change if the new business competes with longtime resident for sales
How much income is subject to tax in State A : Legends Corporation owns and operates two manufacturing facilities, one in State A and the other in State B. How much income is subject to tax in State A
What are some practices you plan to implement to help : To be able to care for patients, you must be able to care for yourself. What are some practices you plan to implement to help you care for yourself and why?
Compute for the theoretical value of the rights : Compute for the theoretical value of the rights assuming the stock is selling right-on. On January 2, 2018, Jupiter Company purchased 10,000 shares of P200

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd