What amount should be reported as loss on sale

Assignment Help Accounting Basics
Reference no: EM133036624

Question - You are provided with the following information on the trading securities purchased by the company on September 31, 2020: Security EE - 1,000 shares, Security FF - 10,000 shares, and Security GG - 20,000 shares. The cost of these securities was P200,000, P1,500,000, and P3,000,000, respectively. The market value as of December 31, 2020 was P300,000, P1,600,000 and P3,200,000, respectively. The market value as of December 31, 2021 was P350,000, P1,700,000 and P1,700,000, respectively. On January 5, 2021, 10,000 shares of Security GG were sold for P150 per share.

Required -

1. What amount of unrealized gain (loss) should be reported in the income statements for 2020?

2. What amount should be reported as loss on sale of trading investment in 2021?

3. What amount of unrealized gain (loss) should be reported in the income statements for 2021?

Reference no: EM133036624

Questions Cloud

Solving the issues and achieve sdgs : Pick up a topic from the following list and discuss how business sector can contribute to solving the issues and achieve SDGs
What is the value of the export receipt : An Australian export company wishes to sell its euro receipts, EUR 500 000, through an FX dealer. What is the value of the export receipt
Hbr case of the globalization of cemex : Based on the HBR case of The Globalization of CEMEX. What has happened with Cemex since the end of the HBR case?
Explain the foundations of private insurance : Explain the foundations of private insurance, group insurance, and self-insurance. Who benefits from each of these? Why is it important to understand basic foun
What amount should be reported as loss on sale : The cost of these securities was P200,000, P1,500,000, and P3,000,000, respectively. What amount should be reported as loss on sale
What is the current rate on a bond : What is the current rate on a bond with a coupon rate of 4% selling at $1200? Why is the current rate lower than the coupon rate? Show math.
How will business analytics can be employed in investment : Explain how will business analytics can be employed in investment? What techniques can be applied to help achieve success for the company?
Better understanding of a social media report : Please make a memo for your boss and you will be developing a better understanding of a Social Media Report
Construct an outline on unemployment rise and sports : Construct an Outline on Unemployment Rise and Sports And Team - construct an outline, you must group your notes together and match information

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd