DOLE acquires an investment for P250,000. Transaction costs amount to P15,000. Journalize the initial measurement if the investment is classified as: a. Financial asset held for trading b. Held-to-maturity investments c. Available-for-sale assets
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- Investing activities include Multiple Choice Purchase of non-current assets Lending and collecting on notes receivable Sale of equity investments Sale of non-current assets < Prev 30 of 30 D Next arch VivoBook LGO 81 dma. calculate the purchase consideration b. calculate the goodwill or bargain purchase for this transaction c. Prepare the journal entries in the books of Chelsea Limited relating to this transaction Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. DETAILS PPE Inventory Long Term Loans Account Payable CARRYING AMOUNT FAIR VALUE 10,000,000 14,000,000 4,200,000 4,400,000 (3,500,000) (3,500,000) (2,500,000) (2,500,000) 8,200,000 12,400,000 3.1. The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition.Tom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6b$225 $1,514 21c$1,425 $4,472 11d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which…
- Classification 1. An entity invests in a pool of assets that is managed by an investment house. In accordance with the entity's business model, the investment will be held until it matures in 10 years' time, at which date the entity will collect the principal amount in the investment together with the interest earned. In accordance with the principles of PFRS 9, the entity will most likely measure the investment at c. FVOCI (Mandatory). d. FVOCI (Election). a. Amortized cost. b. FVPL. 2. An entity plans to purchase a new machine in a few years' time. The cost of the new machine is significant. To address this, the entity invests in debt securities. The entity's investment management strategy is to hold the investment and collect the investment income in the form of interest. However, when opportunity arises, the entity sells the investment in order to realize fair value gain. The entity reinvests any proceeds from sales until the date of purchase of the new machine. In accordance with…classify the given items as (operating / investing / financing), share the correct classification with logical reasoning Loss on sale of asset 95780 dividend income 26000 interest income 35000 finance cost paid on debentures 12000 gain on sale of investment 45000 Depreciation on fixed assets 85000 Amortisation Expenses 110000On December 12th 2021 an equity investment costing $81000 was sold for a $102000 the investment was carried in the balance sheet at $76000 what accounted for under the equity method an error was made in which the total of the sale proceeds was called credit's called credited to the investment account 1 and 2 prepare the following journal entries
- If the value of liabilities is 80000 OMR and owner's equity is 30000 OMR. Calculate the amount of Assets? Select one: a. 110000 OMR b. 100000 OMR c. 90000 OMR d. 10000 OMRCompany A purchased a certain number of Company B's outstanding voting shares at $28 per share as a long-term investment. Company B had outstanding 42,000 shares of $14 par value stock. Complete the following table relating to the measurement and reporting by Company A after acquisition of the shares of Company B stock. Required: a. What level of ownership by Company A of Company B is required to apply the method? b. What events should cause Company A to recognize revenue related to the investment in Company B? c. After the acquisition date, how should Company A change the balance of the investment account with respect to the stock owned in Company B (other than for the disposal of the investments)? Additional information: Net income reported by Company B in the first year Dividends declared by Company B in the first year Market price of Company B stock at the end of the first year $ 72,000 $ 25,000 $ 25 per share d. At acquisition, the investment account on the books of Company A…Use the following data to determine the total dollar amount of assets to be classified as long-term investments. Ace Supply Company Balance Sheet December 31, 2025 Cash Accounts receivable Inventory Short-term investments Land (held for future use) Land Buildings Less: Accumulated depreciation (60,000) Franchise Total assets O $255,000 O $0 $339,000 O $465,000 O $585.000 $ 126,000 120,000 210,000 90.000 255.000 285,000 210.000 $1.575.000 Accounts payable Salaries and wages payable Note payable (due 2028) Total liabilities Common stock Retained: earnings Total stockholders' equity Total liabilities and stockholders' equity 279,000 $ 165,000 30,000 270.000 465,000 360,000 750,000 1.110.000 $1.575.000
- Reporting Land Acquisition for Cash and Mortgage Note on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 272,900 Feb. I 10 Purchased for cash 393,000 665,900 Nov. 20 Purchased with long-term mortgage note 539,400 1,205,300 Item Section of Statement of Cash Flows Added or Deducted Amount Purchase of land for cash Investing activities section Deducted Purchase of land by issuing long-term mortgage note Financing activities section Investing activities section Operating activities section Separate scheduleMultiple choice: 1. Entity A had total assets of ₱120M and total liabilities of ₱80M at the beginning of the period. If at the end of the period, total assets increased by ₱30M, while total liabilities remained the same, Entity A’s total equity at the end of the period would be A. ₱70M B. ₱60M C. ₱90M D. ₱80M 2. Recording assets at their acquisition cost (entry value), rather than at their net selling price (exit value), is in line with the concept of A. Going concern concept B. Single entity concept. C. Matching principle. D. Historical cost concept.Problem 1 Requirements: 1. The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments? Problem 2 requirements: Compute for the adjusted balance of the following: 1. Cash 2. Accounts Receivable 3. Investments 4. Property and Equipment. 5. Current Assets Thank you so much! Please answer complete