Which of the following is debited in recording the...

Name: which of the following is debited in recording the consolidation entry to eliminate an unrealized loss on an intercompany fixed assets sale goodwill plant assets loss on sale of asset retain 61817
Uploaded: 2023-09-01T08:56:42-08:00
Duration: 2 min 5 s
Channel: Madhur L
Description: which of the following is debited in recording the consolidation entry to eliminate an unrealized loss on an intercompany fixed assets sale goodwill plant assets loss on sale of asset retain 61817

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On December 31, Year 1, Penthouse Company held 1,000 ordinary shares of X Co. in its portfolio of long-term investments in equity securities. The shares were designated as fair value through other comprehensive income. The shares had a cost of P150 per share and had a market value of P130 per share at December 31, Year 1. During Year 2, Penthouse acquired the following investments, all of which were designated as fair value through other comprehensive income: 900 ordinary shares of Y Co. for P180 per share and 800 ordinary shares of Z Co. for P220 per share. At the end of Year 2, market values per share were: X – P140; Y – P170 and Z – P200. The adjusting entry on December 31, Year 2 would: a. decrease unrealized loss by P20,000. b. increase unrealized loss by P35,000. c. increase unrealized loss by P15,000. d. decrease unrealized loss by P15,000. What is the net unrealized loss account balance reported in the shareholder’s equity section of Penthouse’s statement of financial position at December 31, Year 2? a. P35,000 b. P15,000 c. Nil d. P20,000

Madhur L.

on-january-2_-zox6_-total-company-acquired-90-of-the-outstanding-shares-of-power-company-at-book-value-during-2ox6-and-2ox7-intercompany-sales-amounted-to-p2000000-and-p4000000-resi-pectivel-36353

On January 2, 20x6, TOTAL Company acquired 90% of the outstanding shares of POWER Company at book value. During 20x6 and 20x7, intercompany sales amounted to P2,000,000 and P4,000,000 respectively. POWER Company consistently recognized a 25% mark-up based on sales, while TOTAL Company had a 25% gross profit on cost. The inventories of the buying affiliate, which all came from intercompany transactions, show: 12/31/20x6: TOTAL - 240,000 POWER - 100,000 12/31/20x7: TOTAL - 160,000 POWER - 40,000 On October 1, 20x6, TOTAL Company purchased a piece of land costing P1,000,000 from POWER Company for P1,500,000. On December 31, 20x7, TOTAL sold this land to an unrelated party for P1,500,000. On the other hand, on July 1, 20x7, TOTAL Company sold a used machine with a carrying value of P60,000 and a remaining life of 3 years to POWER Company for P42,000. Separate statements of comprehensive income for the two companies for 20x7 follow: POWER COMPANY Sales - 25,000,000 Cost of sales - 15,000,000 Gross profit - 10,000,000 Operating expenses - 6,000,000 Operating profit - 4,000,000 Loss on sale of machine - (blank) Net income - 4,000,000 TOTAL COMPANY Sales - 14,040,000 Cost of sales - 8,400,000 Gross profit - 5,640,000 Operating expenses - 3,800,000 Operating profit - 1,840,000 Loss on sale of machine - (18,000) Net income - 1,822,000 Compute the following amounts for/as of December 31, 20x7: Consolidated gross profit:

Mahajan R.

Where do you classify the unrealized gains of the investment in unlisted shares? (1 Point) a. Non-current liabilities b. Profit or loss c. Current liabilities d. Revaluation expense

Jennifer S.

Transcript

00:01 Hello students, in this question, we have to compute the net unrealized loss.

00:05 So, for that first, let's calculate the unrealized loss at the end of year 2 for x company.

00:12 So, for x company, market value per share at year 2 is 40, cost per share is 150.

00:27 So, unrealized loss will be 150 minus 140 is this 10.

00:34 Total unrealized loss for x company will be, total unrealized loss will be this 10 into the shares.

00:42 This is 1000 shares, this is 10 ,000.

00:45 So, this is for x company.

00:48 Now, for y company, market value per share is 170 and earn cost per is this...

Question

Which of the following is debited in recording the consolidation entry to eliminate an unrealized loss on an intercompany fixed assets sale? Goodwill Plant Assets Loss on Sale of Asset Retained Earnings

Question

Which of the following is debited in recording the consolidation entry to eliminate an unrealized loss on an intercompany fixed assets sale? Goodwill Plant Assets Loss on Sale of Asset Retained Earnings

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