1.On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of ₱ 4,875,000 at 102 plus accrued interest to be recognized at amortized cost. The bonds mature on June 30, 2022 and pay interest semi-annually on April 1 and October 1. How much should be reported as interest receivable as of December 31, 2019?  2.On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of ₱ 4,875,000 at 102 plus accrued interest to be recognized at amortized cost. The bonds mature on June 30, 2022 and pay interest semi-annually on April 1 and October 1. How much is the cash paid upon acquisition?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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1.On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of ₱ 4,875,000 at 102 plus accrued interest to be recognized at amortized cost. The bonds mature on June 30, 2022 and pay interest semi-annually on April 1 and October 1. How much should be reported as interest receivable as of December 31, 2019? 

2.On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of ₱ 4,875,000 at 102 plus accrued interest to be recognized at amortized cost. The bonds mature on June 30, 2022 and pay interest semi-annually on April 1 and October 1. How much is the cash paid upon acquisition? 

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