Chapter 1 Problem 10-6
1. Investment in ANA ordinary shares 300,000
Cash 300,000
2. Investment in Benguet ordinary shares 120,000
Dividend income (2,000 x 60) 120,000
3. Investment in ANA ordinary shares 420,000
Cash 420,000
4. Cash 60,000
Dividend income (12% x P200 = 24 x 5,000 x 1/2) 60,000
131
5. Memo – Received 20,000 new ANA ordinary shares as a
result of a 2 for 1 split of 10,000 original shares.
6. Cash (680,000 – 34,000) 646,000
Investment in ANA ordinary shares (8,000/20,000 x 720,000) 288,000
Gain on sale of investment 358,000
Shares Cost
SMC preference share 5,000 1,200,000
Benguet ordinary share 10,000 1,000,000
Benguet ordinary share 2,000 120,000
ANA ordinary share 12,000 432,000
29,000 2,752,000
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