ement: Prepare Journal Entries on June 1 and selling of warrants.

Q: Presented below are two independent situations. (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds…

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

Q: On May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one…

A: Bonds are the promise made between two or more persons legally. Bonds are issued by the companies…

Q: On December 1, Y4, Boston Corp. issued $4,600,000 (par value), 12%, 5-year convertible bonds for…

A:

Q: On July 1, 2020, 2-SO Company issued 10% bonds with a maturity value of P5,000,000 together with…

A: Premium on Issue of Ordinary Shares = ( Issue Price - Par Value ) x Number of Shares   Computation…

Q: On January 1, 20x1, Dagul Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…

A: Amortization of bonds: When bonds are purchased at more or less than the face value, the difference…

Q: XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At…

A: A bond may be regarded of as an I.O.U. between the debtor and creditor including the loan…

Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated…

A: Since the student has posted multiple requirements, we shall answer the first three alone. Thank you

Q: On January 1, 20x1, SPEED Company purchased 12% bonds, having a face value of P800,000. The bonds…

A: Bond is an investment security which is issued by large organizations to raise the fund. The bond…

Q: On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,000. Each P1,000 bonds…

A: Share warrants means rights attached with the issue of bonds by which person has the right to…

Q: What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's…

A: When company owns more than 50% shares in other company, then the acquired company is parent company…

Q: Cullumber Company purchased bonds with a face amount of $725000 between interest payment dates.…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Available-for-sale securities are one of the types of investments held for the purpose of resale of…

Q: On Jan. 1, 2021, an entity bought an investment in bonds with a face value of P3,000,000 for…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year…

A: A consolidated balance sheet is acknowledged as the balance sheet prepared by a parents company…

Q: Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the adjusting…

A: 1. Any excess of the purchase consideration over the net assets acquired of an entity, is first…

Q: On May 15, 2024, Baez Co. issued bond with detachable warrants.  At the time of the issuance, the…

A: Convertible bonds are the bonds that contain an underlying option with the bondholder that allows…

Q: Oblivion Company purchased bonds at a discount of P100,000. Subsequently, the entity sold bonds at a…

A: Unamortized discount at the time of sale = Total discount - amortization of the discount  = P100,000…

Q: Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000.  Subsequently,…

A: Bond Bond is an instrument which are issued by the federal authority which is used by the corporate…

Q: Presented below are two independent situations. a.   George Gershwin Co. sold $2,000,000 of 10%,…

A: a. Determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020.…

Q: Metro Company purchased $500,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on…

A: Bonds are the financial instruments that are used by an entity to borrow funds from the financial…

Q: On September 1, 2022, when the prevailing market rate on similar instruments was at 5%, ABC…

A: DEF Corporation acquired P 50,00,000 bonds of Y company  in 1st September 2022. The bonds will be…

Q: On Jan. 1, 20x1, Yngwei Co. purchased 6,000,000, 10% bonds issued by Malsteen, Inc. for 5,116,292.…

A: Time value of money is the concept widely used by the management to determine the correct worth and…

Q: During 20x9, Oceanic Co. Issued 3,000 of its 9%, ₱1,000 face value bonds at 1011/2. In connection…

A: During 20x9, Oceanic Co. issued 9% 3000 bonds. Issued price = P101.5 Issued price of bonds = P101.5…

Q: On October 1, 2022, Milk Tea Company purchased a debt security having a face value of P3,000,000…

A: In case of investment  in debt security  is measured  at FVTOCI ,initially  the investment  should…

Q: d? Prepare an amortization schedule related to the bond investment in Marlin. How does Martin’s…

A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Since, we answer upto three sub-parts we shall answer first three. Please submit a new question…

Q: 1. Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the…

A: 1. Any excess of the purchase consideration over the net assets acquired of an entity, is first…

Q: At the beginning of the current year, Cove Company, a closely-held entity, issued 6% bonds with a…

A: Solution Concept In case of the compound financial instrument Compound financial instrument is the…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will…

Q: 4. ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31,…

A: Bond payable is a financial instrument in the nature of debt issued by the company to raise…

Q: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the…

A: Introduction: Journals: Recording of a business transactions in  a chronological order. First step…

Q: AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds…

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

Q: 17. On Jan. 1, 20x1, Yngwie Co. purchased P6,000,000, 10% bonds issued by Malmsteen, Inc. for…

A: Bonds are fixed income instrument issued by government and private companies. Bonds carry coupon…

Q: 1) Presented below are three independent situations. igel Corporation retired Tk. 130,000 face…

A: The journal entry is the book to record the transaction. Recording the transaction as per the…

Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: On January 1, 20x1, Dagul Co. acquired 10%, P4,000,000 bonds for P3,807,853. The principal is due on…

A: Date Amount collected Interest Amortization Present value 01.01.20x1 0     3807853 31.12.20x1…

Q: On January 1, 20x1, Eduard Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: Five Co. holds debt securities within a business model whose objective is achieved both by collectin…

A: Solution:  amount of unrealized gain should be shown in the 2018 statement of changes in equity =…

Q: The following are two independent situations. 1.   Sandhill Corporation redeemed $130,500 face…

A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: Assuming the bonds are classified as Trading investment, prepare the journal entries on…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On January 1, 20x1, Dagul Co. acquired 10%, P4,000,000 bonds for P3,807,853. The principal is due on…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: On May 1, 2018, Luzon Company issued P2,000,000, 5 year, 10% bonds for P2,300,00O. Each P1,000 bonds…

A: Share warrants are the rights attached with the issue of shares which provides the issuer of the…

Q: AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2021. The bonds…

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

Q: VICO Company had bonds payable with face amount of P5, 000, 000 and carrying amount of P4,800,000.…

A: Share premium is the amount over and above the par value received by the company. It is the…

Q: a).Prepare the journal entry to record the sale of these bonds on   January 1, 2010.…

A: Face Value of bond = $1,000 Coupon rate = 8% x 6 ÷12 = 4% per period (semiannual) Term = 5 years x 2…

Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…

A: Held-to-maturity Debt investments:  Held-to-maturity debt investments are the investments in debt…

Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated…

A:

Q: On May 1, 20X1, Starlight Company purchased $750,000 of Gazing Corp's 12% bonds at 100 plus accrued…

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

Q: On July 1, 2022, Mocha Corporation issued P5M of its 10%, 7-year bonds with one detachable share…

A: The question has asked about the issue price of the share warrants outstanding. Definition of some…

Q: On January 1, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

A: Working Notes :-                       Company intended to collect the principal and…