Reference no: EM133078207

Questions -

1. On January 1, 2021 Johnray Company purchased marketable equity securities for P10,000,000 the equity qualify as financial asset held for trading. The entity also paid P100,000 as commission to the broker.

a. Give the entry to record the transaction on the books of Johnray.

2. On December 31, 2021 Johnray trading securities has affair value of 12,000,000.

a. Give the entry to record the increase in the value of securities.

b. What disclosure is needed?

3. On December 31, 2022 Johnray trading securities have a fair value of P8,500,000.

a. Give the entry to record the decrease in the value of securities.

b. What disclosure is needed?

4. On December 331, 2023, the trading securities are sold for P11,000,000.

a. Give the entry to record the sale.

5. On January 3, 2021 an entity purchased marketable equity securities for 2,000,000. The entity paid commission and taxes of P200,000. The equity securities do not qualify financial asset held for trading. The entity made an irrevocable election to present unrealized gain and loss in other comprehensive income.

a. Give the entry to record the acquisition.

6. On December 31, 2021, the securities have a market value of P2,500,000.

a. Give the entry to record the increase in market value.

b. How it is presented in the financial statements.

7. On December 31, 2022, the securities have a market value of P2,200,000.

a. Give the entry to record the decrease in market value.

8. The securities were sold for P2,300,000.

a. Give the entry to record the sale.