User Account

All Pages

Determine the balances to be presented in the statement

Assignment Help Accounting Basics
Reference no: EM132957440

Question - On January 1, 2020, La Union Corporation had 30,000 ordinary shares of Cagayan Company acquired during 2019 for the total consideration of P1,800,000, including P30,000 directly attributable costs. On December 31, 2019, the Cagayan shares were selling at P65 per share. In July 2020, La Union Corporation received a 20% bonus issue. Subsequently, it sold 15,000 shares at P70 per share. Market value of Cagayan ordinary at December 31, 2020 was P72 per share.

Required -

1. Give all entries relating to the foregoing for 2020 if the investment are designated at (a) Fair Value through Profit or Loss and (b) Fair Value through Other Comprehensive Income (Assume that the company has the policy of transferring to retained earnings the cumulative balance in equity as a result of measuring the fair value of OCI, when the investment is derecognized.)

2. Determine the balances to be presented in the statement of comprehensive income and statement of financial position as of December 31, 2020.

Reference no: EM132957440

Questions Cloud

Responsible for financial misconduct : Should the CFO be the key leader to deal with ethical risks or should the CFO be only responsible for financial misconduct? (Discuss /give an actual company exa
What amount should gray report as gain from sale of patent : Gray's policy is to take no amortization in the year of disposal. In its 2018 income statement, what amount should Gray report as gain from sale of patent
Should ai accept tt offer : Providing your calculations and based on the relevant costs analysis, should AI accept TT's offer? For the current year, AI is producing motorbikes at its full
Explain the advantages and disadvantages of the telephone : Occasionally managers choose to enhance communication by using the telephone as the only mode of communicating.
Determine the balances to be presented in the statement : Determine the balances to be presented in the statement of comprehensive income and statement of financial position as of December 31, 2020
Briefly discuss the principle of total quality management : Briefly discuss the principle of Total Quality Management and its application in a manufacturing industry set-up
Calculate the total budget variance for the current year : Calculate the total budget variance for the current year using each of the five combinations of exchange rates for translating budgeted and actual results
Measuring the technology maturity levels : Discuss the STAM (Science, Technology, Application, and Market) model to measuring the technology maturity levels.
Make an analysis to decide whether company cars should kept : Make an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones

Reviews

Write a Review

Accounting Basics Questions & Answers

  Record these facts on the books of put company

Give the entries to record these facts on the books of Put Company: Assuming that Put Company uses the cost method of accounting for its subsidiaries

  Diagnostic and treatment space equipment and location

Health care facilities are unique and have clearly defined characteristics based on the needs of the facility or population being served. Poor design may lead to staff, visitor, or patient stress. In large facilities, inability to find a departmen..

  Which situations would be most likely to violate

Which situations would be most likely to violate cost-volume-profit assumptions about variable costs? As volume doubles, direct labour costs also double.

  What are the net operating cash flows

Your Company considers the acquisition of a new brewing machine. The cost price of the machine is R112000. What are the net operating cash flows

  Compute hc inc current year taxable income

Gross profit from inventory sales of $310,000. Compute HC Inc.'s current year taxable income given the following information relating to its 2019 activities

  What journal entries should be made

Assuming that the city's fire department will use the truck, what journal entries should be made for 2013 and 2014 on the government-wide financial statements

  What is the monthly break-even in sales dollars

Allen Company produces and sells a single product whose selling price is $100.00 per unit and whose variable expense is $80.00 per unit. The company's fixed expense total $400,000 per month. What is the monthly break-even in sales dollars?

  How many orders will be placed each year

The company is using Economic Order Quantity model in placing the orders. How many orders will be placed each year

  How to prepare only the stockholder equity section

How to Prepare only the Stockholder's Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs.

  Calculate the gain arising that will be recognized

Calculate the gain arising that will be recognized in income statement assuming that A's 20% shareholding did NOT allow it to exercise significant influence.

  Selected financial measures for short-term creditors

Derivative Products had a current ratio of 2.0 on October 31 of the current year. On that date, the company's assets were as follows:

  High-low method of analysis

Using the high-low method of analysis, the estimated variable cost per labor hour for maintenance is closest to: A) $0.83 B) $1.84 C) $1.30 D) $1.14

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