What should be the journal entry to record the dividends

Reference no: EM132847805

Questions -

Q1. In March of the year 2020, Jopay Company bought nontrading equity investments which are irrevocably designated at FV-OCl. The balance in the unrealized gain/(loss) on these securities was $200,000 on December 31, 2020. During 2020, stock CC was sold for $1,100,000. Pertinent information on December 31, 2020 are the following:

	Cost	Market Value
AA	$2,100,000	$1,600,000
BB	1,850,000	2,000,000
CC	1,050,000	900,000

How much should Jopay Company report as unrealized holding loss in its statement of changes in stockholder' s equity for the year 2021?

Q2. Noemy Co. owns 15,000 of the 100,000 ordinary shares of Republic Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) with a carrying value of $3,300,000. Republic Corporation declared a 10% stock dividend but gave the investors the option to receive $210 per whole stock of dividend. What should be the journal entry to record the dividends if Noemy Co. opted to receive cash?

Reference no: EM132847805

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