17. On July 1, 2018, Houston Company purchased 8% bonds of Ames Corporation with a par value of $200,000 for $175,000 to yield 10%. The bonds are to be held to maturity and pay interest semiannually on June 30 and December 31. The market value of the bonds on December 31, 2018, was $190,000. Houston should report the bond investment at December 31, 2018, at: a. $ 175,000 b. $ 175,750 c. $ 182,000 d. $ 190,000

Q: 22. On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a…

A: Faor Value Through the Statement of Other Comprehensive Income [FVTOCI]…

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: 9. on July 1, 2018, Joalin Company purchased Heyoon Company ten-year, 8% bonds with a face amount of…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On February 1, 2018, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On July 1, 2022, RED TV Company purchased 1,000 of the P1000 face value, 8% bonds for P910,000 plus…

A: It has been given that the bond is held for trading activities. Hence at year-end, the investment is…

Q: On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Prepare the journal entry at the date of the bond purchase. (b)   Prepare the journal entries to…

A: Year Cash flow PVF @10% PV of Cash flow 2020      37,200 0.909      33,818.18 2021      37,200…

Q: On January 1, 2021, Shirley Corporation purchased 10% bonds dated January 1, 2021, with a face…

A: To calculate the price of the bond, all the future cash flows from the bonds are discounted at the…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for…

A: There are two methods of amortizing the premium or discount of bonds that are issued at a price…

Q: 20, Teal Company purchased 9% bonds having a maturity value of $370,000, for $400,342.96. The bonds…

A: The amount of interest expense, interest payment, and discount or premium amortization of a bond in…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: Bond purchased: In order to obtain money from investors who are prepared to lend them money for a…

Q: Sandhill Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,122,360…

A: When the bonds are issued at premium, the amortisation premium needs to be adjusted against the…

Q: 18) On January 1, 2020, ABC Company acquires $400,000 of XYZ Company's 10-year, 8% bonds at a price…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2020, Splish Company purchased 12% bonds, having a maturity value of $450,000.00, for…

A: A bondholder refers to an individual who is an investor or the owner of debt securities which are…

Q: Prepare the journal entry at the date of the bond purchase.

A: Hello, since your question has multiple parts we will solve the first question for you. If you want…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: When bond of other entity is purchased as an investment, it can be reported on the balance sheet…

Q: Sandhill Co. issued $4,100,000 of 12%, 5-year convertible bonds on December 1, 2020 for $4,122,360…

A: Convertible bonds are a type of bonds issued by the organization, where at the time of maturity of…

Q: On December 30, 2021, First Company issued 5,000 of 8%, 10-year, P 1,000 face value bonds with share…

A: Bond Payable There are different type of bond can be issued like discount on bond, par value on bond…

Q: On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for…

A: The below journal entries are passed to show the treatment of interest revenue and premium…

Q: On May 1, 2020, Manny Company issued P2 million, 20-year, 10% bonds for P2,120,000. Each P1,000 bond…

A: 1. Premium on bonds payable arises when the stated rate on bond is higher than its market value 2.…

Q: On May 1, 2021, Payne Co. issued $1,500,000 of 7% bonds at 103, which are due on April 30, 2031.…

A: Bonds represent the liabilities on which a fixed percentage of interest has to be paid over a period…

Q: On January 1, 2016, Case Company issued P5,000,000 of 12% nonconvertible bonds at 103 which are due…

A: The proceeds of issue is allocated based on their relative fair value of warrants and bonds Fair…

Q: On January 1, 2026, ABC purchased term bonds (to be held by collecting contractual cash flows…

A: A bond is a kind of debt financial instrument that helps a corporation to raise capital from the…

Q: On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable…

A: P 120,000 Explanation:

Q: n January 1, 2020 Paradox Company purchased 9% bonds with a face amount of P4,000,000 for P3,756,000…

A: Solution: Bond Amortization Schedule Period Cash Paid Interest Expense Discoount Amortized…

Q: Florence Inc. issued 8,000, 5-year convertible bonds of $2,000 each for $4,000,000 at the beginning…

A: The WWM calculates the difference between two discounted cash-flow models: one that depicts the…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: The question is based on the concept of Financial Accounting.

Q: 18. On July 1, 2020, Morales Corp. acquired P4,000,000 face value of X Corporation bonds with a…

A: Income on bond: To find out how much money was spent in total interest on a bond, you multiply its…

Q: On July 1, 2021, Darrell Company purchased as debt investments at fair value through profit or loss,…

A: Realised gain is the gain which is realised in cash after sale of bonds.…

Q: Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2018.…

A: The question is based on the concept of Corporate Finance

Q: On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale…

A: Here problem related to the purchase of sales of securities and determination of fair value changes…

Q: Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2018 for $6,025,480 plus…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…

A: Semiannually interest receipt = Face value of bonds x rate of interest x 6/12 months = $20,000,000 x…

Q: On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104.…

A: a) Step 1: Prepare the journal entry to record the issuance of the bonds by Limbaugh

Q: On January 1, 2023, Baker Company purchased, as an investment, 5% bonds, having a maturity value of…

A: The Baker Co. purchased 5% bonds at discount of 11,600 [150,000-138,400].  The…

Q: On January 1, 2020, Monty Company purchased 12% bonds, having a maturity value of $310,000 for…

A: a. Prepare the journal entry at the date of the bond purchase. b. Prepare the journal entries to…

Q: of each year. Riverbed Company uses the effective-interest method to allocate unamortized discount…

A: The values and bonds are given as, 2020   $ 303,400   2023   $ 293,200 2021   $ 292,200…

Q: Larkspur Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1, 2020, at 99 plus…

A:

Q: On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of…

A: bonds issued with share warrant here at the time of issue of the bonds by the company it will also…

Q: On January 1, 2021, Rapid Airlines issued $200 million of its 8% bonds for $184 million. The bonds…

A: Required: 1. Prepare the journal entry to record interest on June 30, 2021 (the first interest…

Q: 4- On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturity value of $600,000 for…

A:

Q: On January 1, 2020, Sandhill Company purchased 12% bonds, having a maturity value of $325,000 for…

A: ) Date General Journal Debit Credit   Jan. 1, 2020 Debt investments 349,639.81       Cash…

Q: bonds provide an effective yield of 10%. The bonds are dated January 1, 2020, mature on January 1,…

A: Solution: Face Value of Total Bond = 50,00,000 Face Value per Bond = 100 Number of Bond = Face Value…

Q: On May 1, 2021, Marly Co. issued $2,500,000 of 7% bonds at 103, which are due on April 30, 2031.…

A: 1. Collection from issue of Bonds Total Bonds Issued are $25,000 Bonds Face  Value = $100 per bonds…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: Lets understand the basics. When debt investment purchased and designated at FVTPL then interest…

Q: On January 1, 2019, Ron Company purchased 12% bonds with face amount of P5,000,000 for P5,380,000…

A: Face value of bond=5,000,000  Rate of interest=12% Interest Income = Rate of Interest * Face Value…

Q: 34.On January 1, 2020, FF Company purchased 12% bonds with face value of P5,000,000 for P5,380,000.…

A: The debt securities which are acquired by the investor to earn interest income periodically on the…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Financial asset held for earning contractual cash flow and to held the asset till maturity, is…