On May 1, 2011, Graham Company purchased a short-term P2,000,000 face value, 9% debt instruments for P1,860,000 including the accrued interest and classified it as an investment to profit or loss security. The debt instruments mature on January 1, 2014 and pay interest semi-annually on January 1 and July 1. On December 31, the fair market value of the instruments is 98%. On March 2, 2012, Graham Company sold the trading security for P1,980,000.

Q: Prepare the adjusting entry to record the securities at fair value.

A: Given information is: In its first year of operations, Sandhill Corporation purchased, as a…

Q: On July 1, 2018, Zia Inc. acquired investments in bonds of Ding Co.'s 10-year 12% bonds, with face…

A: The gain on the disposal of bonds is the difference between the carrying amount of bonds and the…

Q: On January 1, Year 1 Navara Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL IS A COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

Q: On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000.…

A: Reclassification of Debt Instrument As a result debt securities may be reclassified from the…

Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

Q: On January 1, 20X1, ABC acquired 5,000 of XYZ’s bonds denominated at P1,000, 12% interest rate, 5…

A: On 01.01.20X1, ABC acquired XYZ bonds = 5000 bonds Par value per bond = P1000 Total bonds acquired =…

Q: On January 2, 2012, Saul Company invested in a 10-year 10% debt instrument with a face value of P…

A: Face value = P 3000000 Interest = 10% of Face value = P 300000 n = Remaining years = 6 r = 9% in…

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A:

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: It is pertinent to note that equity securities held for trading are measured at fair value through…

Q: On October 1, 2020, Kikiam Company purchased as debt investments at fair value through profit or…

A: Attributable Cost It is the cost which is  associated  directly with an investment or  cost center.

Q: On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or…

A: Interest accrued on October 1, 2020 = Face value of bonds x ratre of interest x no. of months/12 =…

Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Debt instruments: It is the instrument issued by the company to take loan. Under this instrument…

Q: On November 1, 2021, Romblon Company invested in P600,000 in equity securities representing 20,000…

A: When an asset or any security is sold, they are sold with the expectation to earn gain which can be…

Q: On January 1, 2020, the Pacita Corporation purchased equity securities for P2,000,000. The company…

A: Pacita Corporation…

Q: On January 1, 2022, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022,…

A: Profits on readily available-for-sale securities with easily determined fair values should be…

Q: On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also…

A: OCI generally includes the incomes/expense/gains/losses that are going to be realized in future but…

Q: Colah Company purchased $2.4 million of Jackson, Inc., 6% bonds at their face amount on July 1,…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: On January 1, 2021, ABC acquired a 10%, 5 year, 2,000,000 face value bonds for trading purposes. The…

A: The interest income on financial instrument is recognized at effective interest rate on the fair…

Q: On July 1, 2020, Sprakenheit Company purchased P500,000 face value Swazzeg Company 8% bonds for…

A: Bonds: Bonds are one of the main debt sources of raising funds from the public. Company issue bonds…

Q: On January 1, 2016, Ritter Company bought 10% of the outstanding ordinary shares of Bear…

A:

Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: On May 1, 2019, LAG Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Given, Purchases = P 1,860,000 Face Value = P 2,000,000 Fair value = 98%

Q: On January 1, 2020, the Stew Corporation purchased equity securities to be held for trading purposes…

A: It is pertinent to note that trading securities are always measured at fair value through profit and…

Q: Ramirez Company has a held-for-collection investment in the 6%, 20-year bonds of Soto Company. The…

A: GAAP - Generally Accepted Accounting Principles refer to a common set of accounting principles,…

Q: On January 1, 2020, the Soondubu Stew Corporation purchased equity securities to be held for trading…

A: OCI prepared to recognise the income/expense/gain/loss which are going to be realised in future…

Q: On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also…

A: The investment in financial securities can be reported as trading security, held to maturity…

Q: On December 31, 2018, ABC Corp. acquired Garlic Corp.’s P1,000,000 notes for P927,880. The market…

A: The impairment is recognized when the value of assets is lower than its book value.

Q: Garfield Company purchased, on January 1, 2017, as an available-for-sale security investment,…

A: The Amortization is defined as the method that reduces the cost value with intangible asset. The two…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: a) prepare appropriate entry at December 31, 2016:

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: The correct answer is given in the following steps for your reference

Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Linco Industries is a 90%- owned subsidiary of Sharp Incorporated. On January 1, 2015, Linco issued…

A: Prepare eliminations and adjustments as explained: Result:

Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: The recognized net income is income that is received to the organization and the net income as…

Q: On January 1, 2014, Dunbar Corporation, an 85%-owned subsidiary of Garfield Industries, received…

A:

Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a…

A: A profit and loss financial statement that illustrates a company's revenue and spending over a…

Q: On July 1, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31,…

A:

Q: Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with…

A: Bonds can be define as an instrument which most commonly used by corporate entities and government…

Q: On January 1, 2021, the Oliswel Corporation purchased equity securities to be held for trading…

A: Investment in securities means where the company purchased the share or other securities of other…

Q: uming that the compan

A: As per protocol, allowed to answer first question and post the remaining in the next submission.

Q: On October 2014, Nathan Company purchased a debt security having a face value of P 3,000,000 with an…

A: Calculation of Accrued Interest on the date of acquisiton (Oct 2014)  Interest on 10% bonds is…

Q: On July 1, 2003, New York Company purchased, as investment measured at amortized cost, P1,000,000 of…

A: Effective Interest method of amortization: It is the method for amortizing bond which is sold at…

Q: If on Nov. 30, 2021, ABC sold the investment, what is the interest income for that year?

A: Bond Valuation: When bonds price is more than face value, the bonds are issued at premium and when…

Q: On May 1, 2020, Girl Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Recognized income=Selling price-Purchase price

Q: , 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the…

A: Basic Accounting Concepts, Note Payable

Q: n July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8%…

A: Explanation of Concept  Bond is that debt instrument which is used by the organisation to finance…

Q: On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also…

A: Unrealized Gain / (Loss) = Fair Value - Cost of Investment