E 16.3 Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on January 1, 2020, for $70,000. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500. Instructions Prepare the journal entries to record the transactions described above.

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: July 1, 2019, Jelli&Tin Company purchased P500,00 face value Red Cup Company 8% bonds for P455,000…

A: SOLUTION LOSS ON SALE ON SECURITY IN 2020 = ACCRUED INTEREST UPTO FEB 1 2020 Is 1.5 MONTHS. =…

Q: On July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: GIVEN   On July 1, 2021 MIA Company purchased P500,000   face value AIM Company 8% bonds for…

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, 2021, Demeanor Company purchased bonds with face amount of P5,000,000 to be held as…

A: Bond is an investment security which provides a fixed interest income to the bondholders. The…

Q: 1. On April 1, 2020, Ghost Co. purchased $120,000 of six percent, 10-year bonds to yield 5%. The…

A: Journal entries shows the recording of the transactions during an accounting year and every…

Q: On January 1, 2021, Peru Company purchased P5,000,000 face amount, 17% bonds. The bonds were…

A: Interest income recorded for the year is based on the carrying value of bonds at the beginning of…

Q: How much are the interest income and carrying amount of the b

A: Interest income The amount paid to an entity for lending its money or allowing another organisation…

Q: On May 1, 2020, Ceylon Corporation sold $90,000 of its 15%, five-year bonds dated January 1, 2020,…

A: Interest accrued=Value of bonds×Rate×412=$90,000×15%×412=$4,500

Q: On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for…

A: Bond Payable The main sources of generation liquidity into the business entity to raise the issue of…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Available for Sale (AFS): When investments are made in securities with an intention to make profit…

Q: On January 1, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: Face value of bond, on January 1, 2018 = P 4,000,000 Carrying value of bond on January 1, 2018 = P…

Q: carrying amount of the bonds on December 31, 2023?

A: Accrued Interest -:In computation, Accrued Interest relates to the proportion of interest that has…

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…

A: Bonds are a type of long-term debt that is issued by the company to capital. The bonds come with a…

Q: 1. On July 1, 2019, Hello Corporation acquired an investment at amortized cost in Screen Company's…

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

Q: On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000…

A: A bond is an investment security which provides a fixed amount of return on its investment. Since it…

Q: On January 1, 2020, SMB Company acquired the entire issue of Beerman’s P6,000,000 12% serial bonds.…

A:

Q: Prepare the journal entries to record the transactions described above. (Round answers to 0 decimal…

A:

Q: On January 2, 2021, Santos Company invested in a 4 –year, 10% bond with face value of P6,000,000 in…

A: According  to the question Santos Company purchased a 4-year, 10 % bond with a face value of P…

Q: Sycamore, Inc. purchased P100,000 of 8 percent bonds of Alvarado Industries on January 1, 2022, at a…

A: GIVEN   Sycamore, Inc. purchased P100,000 of 8 percent bonds of Alvarado Industries on January 1,…

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 November 1, 2022, Dayrit Corporation purchased P800,000 face value, 10-year, 8% term bonds dated…

A: The bonds are issued by a company in order to fulfill its financial needs. These are classified as…

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

A: Ending balance of Bond Investment = Beginning Balance + Interest Accrued at Effective rate -…

Q: On July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: Valu of bond are as follows

Q: 1.On July 1, 2018, TRES Company purchased an 8-yr, 12% bonds with a face value of ₱ 4,875,000 at 102…

A: Accrued interest on July 1, 2018 = Face value of bonds x rate of interest x no. of months / 12 = ₱…

Q: 6.On January 1, 2019, Cruiser Corporation issued 5,000 of its 5-year, P1,000 face value, 11% bonds…

A: Introduction: In simple terms, bond is a loan taken by the issuer company from the person who…

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

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: ISKO Corporation authorized the sale of P4,000,000 of 12%, 8-year debentures on January 1, 2016.…

A: Bonds- A bond is a debt instrument in which the bond issuer owes the debt to the holders and is…

Q: On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation at a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed…

Q: On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000…

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

Q: rtized premiums of P1,770 and P1,830, respectively. At December 31, 2022, the fair value of the…

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

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 May 1, 2019, Ed Company purchased a short-term P2.000.000 face value, 9% debt instruments for…

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

Q: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid…

A: Coupon Interest on the bonds: White Corporation purchased the bonds on 1st March 2020 and held the…

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: On July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: Debt investment is one type of investment made by individuals or businesses by purchasing large…

Q: 2. On January 1, 2020, Novatpa Company purchased $1,000,000, 6% bonds of Aguirre Co. for $947,574.…

A: Here discuss about the details of the valuation of bond with the amortization of discount which are…

Q: On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000…

A: Bonds can be defined as debt securities which are issued by large organisation including government…

Q: 14. On July 1,2020, Pell Cornpany purchased Green Cormpony ten-year, 8% bonds with a face amount of…

A: Given, Face amount = P 5,000,000

Q: Adrian Henry Company purchased P2,000,000, 12%, 4-year bonds at 102, excluding the interest on April…

A: Investment is referred to as an action under which the investor invests the money to get returns on…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation at a market…

A: Step 1 Journal is the part of book keeping.

Q: Barney Company purchased 10,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of…

A: Face value of 5000 bonds P 1000face amount =P5000000Carrying value of 5000 bonds(9750000 /2)…

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

A: Grana Inc. purchased 13% bond P 500,000 Yield = 10%  Duration = 5 years  Lets suppose par value bond…

Q: Bundle Company issues 1,000,000 par value 10 year bonds at 102 on January 1, 2018, which Mega…

A: The bonds are fixed income securities issued by Bundle Company to Mega Corporation with semi-annual…

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…