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  • Audit of Investments and Related Accounts (Handouts 1)

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    Maybelle Bernal
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    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    35 views4 pages

    Audit of Investments and Related Accounts (Handouts 1)

    Uploaded by

    Maybelle Bernal

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 4
    tw 6 aeatne {ae Mets wwe & iy ne . investment Be intially recorded ai? 2 Unrealized gain (loss) to Be recognized onprofitorlasson | ye | ase | = December 51. 2015 3 How much isthe goin floss 0 be Goma recognized inobher - |= comprehensive income in 2015? “ “How much isthe interest income r to be recognized in 2015? 1 cml eal 3 How muuch is te surat Fisy [ayy 3 non af aT _beegeme arene floss tobe recognized nthe a} = Jama | ann | oe anf 2015 saiement of nancial chutes! position? | How mach Sond te act - tepid i wate ook | feoe | poe fame fumtsa | owed | Financial position as of Decombr 31,2015? it Se . eine | recognized in prot or ass am | (428) West2a) |__December 31/2018 1 ether | | 2 ute |B How much isthe gin fos to Be a onpeers ioe in 3016? ~ orn | Gon I Howmuchis the interest income | gon | yp tu ho recognized in 2016? Ta: How much i he cumulative ga mw (dos) tobe recognized inthe = | = Jeet) | crosa07 = 2016 statement of financial position? TI: How much Soul he esse gel te teen cases | eanart | caste | ocagy | cease financial position ax of December 31,2010? TE How much 0 sain floss) tobe recognized onsale o tnvesments on January 62018? | |_| _ FUTPL= Fir Val t Profit or Loss, AFS~ available: For Sale; FVFOCI ~ Fair Vale Other Comprehensive incom: HIM « Held 0 maturity: AC = Amortized Cost het) I ~ gut | pen | Poe wy, |e was | as fore | ann CASES On the sequin dae. ADAM THON’s Company designates purchase ofdebtand egy vn), Securities available forsale. Adamon’s intent in buy investnent secu i. 0 ake them avaiable Tor sole when cieumstnces waa, etm prot from shor nm ‘fluctuations in price. : be eters prvi ane _Adamthoa’s financial year ends on December 31. No investments were held by the company at the beginning ofthe year. Deseribe below are the compsny’s investment related transactions 201s Musto Paras 30,000 National Ya Ie, ondinary shares for P750,00,inlading brokerage Fes and carmissions April 1S Purchased P1,000,000 of 10% | bonds(ttace valu value from Atene You Corporation. n July 23 Received cash dividends of P60,000 on the investment in National You Inc. i onary shares, Oct. 15 Received semiannual interest on the investment in Atene You Corporation bonds. Oct 16 Sold the Atene You Corporations bonds for P1,100,000. Nov. (2 Purchased 250,000 San Budieh Co. preference shares for P12,500,000 brokerage fees and commissions. Dec. 31 Record the necessary adjusting entries relating tothe investments, The market values ofthe investments are P30 for National You Ine. and P44 for San Buddch. Jusding 2016 Jan. 27 Sold halfof National You Inc. shares for P6S per share. March (2 Sold the San Buddch Co, preference shares for P78 per share. 1. What isthe gui (loss) on sale of the Atene You Corporations bonds on October 16,2015? a PO . P200,000 ©. (P100,000) «d.P100,000 What is the total amount that would be reported on Adamthon’s December 31, 2015 income atement relative to these investments? a, P210,000 260,000 €.P110,000 4,160,000 Wk 4 594+ ew 3. Howimuch unrealized gain (loss) should be reported inthe profit or loss in 2015? 'b.(P1.500,000)—¢-P100,000,

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