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Thursday, August 12, 2010

Valix Finacc vol 1 Problem 10-12

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 10-12



1. Investment in equity securities                                                    3,200,000
         Cash                                                                                                              3,200,000

2. Memo – Received 20,000 shares as stock dividend on
                   80,000 original shares.  Shares now held, 100,000.

3. Cash (100,000 x 5)                                                                         500,000
         Dividend income                                                                                            500,000

4. Stock rights (5/40 x 3,200,000)                                                       400,000
            Investment in equity securities                                                                      400,000



                                                                                                           134

5. Cash (40,000 x 5)                                                                           200,000
            Stock rights (40,000/100,000 x 400,000)                                                          160,000
            Gain on sale of rights                                                                                                 40,000

6. Investment in equity securities                                                      600,000
            Stock rights (60,000/100,000 x 400,000)                                                          240,000
            Cash (60,000/5 = 12,000 x 30)                                                                        360,000

7. Cash (80,000 x 35)                                                                       2,800,000
            Investment in equity securities                                                                    2,240,000
                    (80,000/100,000 x 2,800,000)                                 
            Gain on sale of investment                                                                          560,000

                                                                                                          Shares                Cost
     Original acquisition                                                                       20,000            560,000
     New acquisition                                                                            12,000             600,000
                                                                                                           32,000          1,160,000

 

3 comments:

  1. wala na po ba kayong newer post nito??? sana po magpost kayo kasi kailangan talaga namin.

    ReplyDelete
  2. MAraming salamat po sa inyong tulong, God Bless u

    ReplyDelete
  3. abangan nyo po mag post pa po ako this month

    ReplyDelete