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Inna Company

The document shows accounting entries for Inna Corporation's equity investments for years 2 and 3. In year 2, the equity investments had a cost of $1.8 million and an unrealized gain of $150,000. In year 3, Inna received additional shares worth $237,500 as a bonus and sold investments for $1.05 million, resulting in an unrealized gain of $462,000 at the end of the year.

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Arlene Garcia
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75 views1 page

Inna Company

The document shows accounting entries for Inna Corporation's equity investments for years 2 and 3. In year 2, the equity investments had a cost of $1.8 million and an unrealized gain of $150,000. In year 3, Inna received additional shares worth $237,500 as a bonus and sold investments for $1.05 million, resulting in an unrealized gain of $462,000 at the end of the year.

Uploaded by

Arlene Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Serentas, Kristine T.

Inna Corporation
(a) December 31, Year 2 ledger balance P 1 950 000
Cost 1 800 000
Unrealized Gain or Loss on Equity Investments - OCI P 150 000

Year 3
Memo: Received 6,000 shares of NPA Co. ordinary as 20% bonus issue on the
30,000 shares previously held.

Equity Investments at Fair Value through OCI 237 500


Unrealized Gain or Loss on Equity on Equity Investments – OCI 237 500

Cash 1 050 000


Equity Investments at FV through OCI 1 050 000

Unrealized Gain or Loss on Equity Investments – OCI 300 000


Retained Earnings 300 000

Equity Investments at FV through OCI 42 000


Unrealized Gain on Equity Investments at FV through OCI 42 000

(b) None

(c) Equity Investments at Fair Value through OCI P1 512 000

(d) Unrealized Gain or Loss in Equity, 12/31/ Year 3 P 462 000

Fair value, December 31, Year 3 P 1 512 000


Cost 1 050 000
Unrealized Gain (Loss) in Equity P 462,000

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