How much is the gain/loss on the sale of the debt investment?
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N company purchased debt investment at amortized cost at a discount of P20,000. Subsequently, N sold these bonds at a premium of P28,000. During the period the N held this investment, amortization of discount amounted to P4,000. How much is the gain/loss on the sale of the debt investment?
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- Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossStarmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?
- Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267Parilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold 50,000 of the bonds for 96. Journalize entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of 1,000 interest on December 31, 2016.OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.
- Peter Company purchased bonds at a discount of P5,000,000. Subsequently, Peter sold these bonds at a premium of P2,000,000. During the period that Peter held this investment, amortization of the discount amounted to P1,500,000. What amount should Peter report as gain on the sale of the bonds?On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value bonds for P7,383,000. The bonds were purchased to yield 10%. Interest is payable semi-annually on December 1 and June 1. On June 1, 2021, LM sold the bonds for P7,850,000. This amount includes the appropriate accrued interest. How much is the gain or loss on the sale of the debt investment?Candle Company purchased P3,000,000 of bonds at par. The entity has elected the fair value model for this investment. At year-end, the entity received annual interest of P120,000 and the fair value of the bonds was P2,823,000. What total income or loss from bond investment should be reported in the income statement? Indicate GAIN OR LOSS.
- On July 1, 2003, New York Company purchased, as investment measured at amortized cost, P1,000,000 of Park, Inc.’s 8% bonds for P946,000, including accrued interest of P40,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2010 and pay interest annually on January 1. York uses the effective interest method of amortization. In its December 31, 2003 balance sheet, what amount should York report as investment in bonds? a. 911,300 b. 916,600 c. 953,300 d. 960,600On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or loss, P100,000, 14% bonds of Samjang Company for 99 plus accrued interest and broker’s fees. Interest is paid semi-annually on February 1 and August 1. Broker’s fees incident to this purchase amounted to P500. How much was the total cash payment in the acquisition of the debt investments on October 1, 2020?On July 1, 20x3, Wenna Inc. purchased as a short-term investment a P 1,000,000 face value Keizen Co. 8% bond for P 910,000 plus accrued interest to yield 10%. The bonds mature on January 1, 20x10, pay interest annually on January 1, and are classified as Debt Investments @ Fair Value through Profit or Loss. On December 31, 20x3, the bonds had a fair value of P 945,000. On February 13, 20x4, Wenna sold the bonds for P 920,000. On July 1, 20x3, how much cash was paid by Wenna Inc. in connection with the purchase of the Debt Investments?
