Prepare the journal entries

Assignment Help Accounting Basics

Reference no: EM132822060

Question - Karen Company has the following transactions relating to its investments during 2018:

January 5 - Acquired 10,000 shares of Klaire Company for Php 1,000,000 paying additional Php 20,000 for brokerage and another Php 5,000 for commission.

February 14 - Received dividends from Klaire Company declared on January 2, 2018 to stockholders of record January 31, 2018 at Php 20,000

On December 31, 2018 and 2019, the market value per share of Klaire Company stock is Php 95 and Php 120.

Required - Based on the above, prepare the journal entries assuming the investment is

1. Financial asset is measured through profit or loss.

2. Financial asset is measured through other comprehensive income.

Reference no: EM132822060

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