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AP 5904Q Investments
AP 5904Q Investments
1 - Chicker Company
Question no. 1 - D
Total cost of acquisition (P1,690,000 + P4,000,000) 5,690,000
Less cost of securities sold:
PLDT - [14,400/(40,000+8,000)] x (40,000 x P30.75) 369,000
Benpres - 4,000/20,000 x (20,000 x P23) 92,000
Pag-Ibig Bonds 4,000,000 4,461,000
Adjusted balance, 12/31/05 (or see computation per ledger) 1,229,000
Question no. 2 - B
Shares Cost/share Total
Balance, 3/1/2005 40,000 30.75 1,230,000
Stock dividend, 10/01/05 8,000 -
Balance 48,000 25.63 1,230,000
Sale of 14,400 shares, 11/05/2005 (14,400) 25.63 (369,000)
Balance PLDT shares, 12/31/2005 33,600 25.63 861,000
Question no. 3 - A
Shares Cost/share Total
Balance, 3/1/2005 20,000 23.00 460,000
Sale of 4,000 shares, 11/05/2005 (4,000) 23.00 (92,000)
Balance 16,000 23.00 368,000
15% stock dividend, 11/15/05 2,400 -
Balance Benpres shares, 12/31/2005 18,400 20.00 368,000
Question no. 4 - D
Proceeds from sale of PLDT and Benpres shares 532,000
Proceeds from sale of Pag-Ibig bonds (P4,000,000 x .98) 3,920,000
Total 4,452,000
Less cost of securities sold:
PLDT - [14,400/(40,000+8,000)] x (40,000 x P30.75) 369,000
Benpres - 4,000/20,000 x (20,000 x P23) 92,000
Pag-Ibig Bonds 4,000,000 4,461,000
Net loss on sale of securities (9,000)
5 Cost 208,000
Fair value 110,000
Unrealized loss 98,000 A
PROBLEM NO. 3 - UK Company
6C
Shares Cost/share Total cost
Balance, 1/1/05 40,000 20.00 800,000
Receipt of stock rights, 3/15/05 - - (160,000)
Balance 40,000 16.00 640,000
Sale, 6/30/05 (use FIFO) (4,600) 16.00 (73,600)
Balance, 12/3/05 35,400 566,400