The Following Information Pertaining To A 5 Year P4 000 000 Debt Investment With A Stated Rate Of 12 Was Taken From The 1 (168.22 KiB) Viewed 48 times
The following information pertaining to a 5-year P4,000,000 debt investment with a stated rate of 12% was taken from the records of Eggplant Company: Date January 1, 2020 December 31, 2020 December 31, 2021 Amortized Fair value cost P4,303,263 P4,303,263 4,253,589 4,388,766 4,198,948 4,097,749 Market rates 10% 9% 11% On January 1, 2021, the investment was reclassified under various classifications (refer to the requirements below). Assume that the fair value on the date of reclassification was the same as the fair value on December 31, 2020. Required: Under the various cases below, prepare the following: (a) Journal entry to record the reclassification of investment at January 1, 2021; (b) An audit working paper for 2021 showing computations for (a) the interest income, (b) carrying amount of the investment, (c) net unrealized gain (loss) in P&L and (d) cumulative net unrealized gain (loss) in shareholders' equity.
Case 1 2 3 4 5 6 0 0 AWN From FVOCI FVOCI Amortized cost Amortized cost FVPL FVPL To Amortized cost FVPL FVOCI FVPL FVOCI Amortized cost
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