Problem 1

Jan. 1, 2017 Trading Securities 2,000,000

Financial Asset- FVOCI 4,000,000
Cash

Dec. 31, 2017 Trading Securities 500,000

Unrealized Gain - TS

Unrealized Loss - OCI 700,000

Financial Asset - FVOCI

Dec. 31, 2018 Trading Securities 200,000

Unrealized Gain - TS

Dec. 31, 2019 Unrealized loss - TS 600,000

Trading Securities

Financial Asset @ FVOCI 900,000

Unrealized loss - OCI
Unrealized gain - OCI

Problem 2
Required 1

Jan. 1 Investment in Equity Securities - King Company 700,000

Cash

Mar. 1 Investment in Equity Securities- Queen Company 660,000

Cash

Apr. 1 Cash 50,000

Dividend Income

Jul. 1 "Received 2,000 shares as 20% share dividend on 10,000 Queen Company shares originally held. Sh

Aug. 1 Investment in Equity Securities - Princess Compa 500,000

Cash

Oct. 1 "Received 60,000 new shares of Queen Company as a result of a 5 for 1 split of 12,000 original shar
 1 Cash 50,000
Dividend Income

31 "Received 60,000 stock rights from Queen Company to subscribed for one new share at P20 for eve

Nov. 15 Investment in Equity Securities - Queen Company 120,000

Cash (6,000*20)

Dec. 1 Cash (66,000*5) 330,000

Dividend Income

15 Cash (10,000*30) 300,000

Investment in Queen Company
Gain on Sale of Investment

Required 2
Shares
King Company Shares 10,000
Queen Company Shares
Block 1 50,000
Block 2 6,000
Princess Company Shares 10,000
Total 76,000

Problem 3
2017
May. 1 Investment in Bonds 5,640,000
Interest Income 180,000
Cash

Aug. 1 Cash 360,000

Interest Income(6M*12%*6/12)

Dec. 31 Accrued Interest Receivable 300,000

Interest Income(6M*12%*5/12)

Investment in Bonds 64,000

Interest Income
 2018
Jan. 1 Interest Income 300,000
Accrued Interest receivable

Feb. 1 Cash (6M*12%*6/12) 360,000

Interest Income

Aug.1 Cash 360,000

Interest Income

Dec. 31 Accrued Interest receivable 300,000

Interest Income

Investment in Bonds 96,000

Interest Income

2019
Jan. 1 Interest Income 300,000
Accrued Inerest Recvbl

Feb. 1 Cash (6M*12%*6/12) 360,000

Interest Income

May. 1 Investment in Bonds 32,000

Interest Income(8,000*4)

1 Cash 6,480,000
Investment in Bonds
Interest Income
Gain on Sale of Bonds
 6,000,000

500,000

700,000

200,000

600,000

700,000
200,000

700,000

660,000

50,000

een Company shares originally held. Shares now held, 12,000."

500,000

of a 5 for 1 split of 12,000 original shares."

 50,000

ribed for one new share at P20 for every 10 rights held."

120,000

330,000

110,000
190,000

Cost
700,000

550,000
120,000
500,000
1,870,000

Cost (6M x 94%)

Acc.Int. (6M * 12% * 3/12)
5,820,000 Total Payment

360,000

300,000

May 1,2017 to Feb. 1, 2021

64,000 Monthly Amort (360,000/45)
May 1 to Dec. 31 2017 (8,000*8)
 300,000

360,000

360,000

300,000

96,000

300,000

360,000

32,000

Sale Price
5,832,000 Acc.Int Feb. to May 2019(6M*12%*3/12)
180,000
468,000
Cost
Amort of Discount from May 2017-May2019(8,000*24)

Sale Price (6M*105)

Carrying Amount
Gain on Sale
5,640,000.00
180,000.00
5,820,000.00

45 months
8,000
64,000
6,300,000
180,000
6,480,000

5,640,000
192,000
5,832,000

6,300,000
5,832,000
468,000