how much is the interest income in 2023 2.how much is the carrying amount of the bonds at december 31,2023 3.how much is the unamortized portion of premium on december 31, 2024

Q: Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July…

A: Bonds are a form of debts taken by the company. But the company who is purchasing bonds will be…

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A: No.  Account Titles & Explanation   Debit   Credit  (C)   Interest Receivable ($110,000 * 9%)…

Q: On January 1, 2019, Lasagna Company purchased 3,000, P1,000 face value term bonds with a stated rate…

A: Here discuss about the details of Valuation of Bond and its changes as in the reclassification as…

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On January 1, 2019, La Vida Company purchased 3,000, P1,000 face value term bonds with a stated rate…

A: Reclassification is when business entity changed business model for managing its financial assets.…

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: a) On May 31st,2020, Ford company purchased a long-term investment related to Motro Company for $12…

A: Adjusting journal entry is made at the end of the fiscal period to reflect the adjustment that has…

Q: On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were…

A: A bond is a debt security that produces fixed income at a pre-determined rate. The bond issuer is…

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: Dolphin Company purchased 10,000 Shark Company bonds in 2018 for $57 per bond and classified the…

A: Gain on sale = Sale price - Cost of purchase

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA…

A: Amortization of loan is a schedule that depicts the periodic payments on the loan amount taken by…

Q: Tanner-UNF Corporation acquired as a long-term investment $150 million of 4% bonds, dated July 1, on…

A: This investment shall be classified on Tanner-UNF's balance sheet as Long term investment at the…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: Investments by an entity During the course of economic activities of a company, it generally comes…

Q: On June 30, 2021, ABC Corp. purchased a P3,000,000 face value bonds with P2,925,067.05 cash. The…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

Q: On January 1, 2021, Mirakulo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to…

A: Carrying amount of the bond = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2019, Lasagna Company purchased 3,000, P1,000 face value term bonds with a stated rate…

A: Due to reclassification of debt instrument from amortized cost Fair Value through Profit or Loss,…

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

A: Bond Valuation In the bond valuation it uses either in par value or in discount or in premium on…

Q: For the next (3) three questions: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at…

A:

Q: For items 5 and 6, please refer to the following information: On January 1, 2021, ABC Company…

A: When the investment is purchased , transaction cost is included in its total cost.

Q: On January 1, 2017, KLM Company purchased bonds with face amount of 5,000,000. The entity paid…

A: GIVEN   On January 1, 2017, KLM Company purchased bonds with faceamount of 5,000,000. The entity…

Q: On January 1, 2021, Mirakulo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to…

A: Carrying amount of the bond = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2020, Soledad Company purchased 10% bonds with face amount of P3,000,000. The bonds…

A: Profit or loss on reclassification  is the difference between the revised carrying value and…

Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: Date Accounts Debit Credit January 2, 2022 Cash 200,000,000     Discount on Bonds 39,500,000…

Q: Mills Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on July…

A: Journal Entries:-These are prepared by the companies with debit and credit sides in order to match…

Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated…

A: Solution 1 to 3:       Journal Entries -  Fuzzy Monkey Technologies Inc. Event Date Particulars…

Q: On January 1, 2020, Pony Company acquired P5,000,000, 12% bonds to be held as finaNcial assets at…

A: The answer is as fallows

Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: working note: 1. calculation of decrease in the bond price. fair value of the bond as on January 2…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: The current price of a bond is the total value for which a bondholder will be able to purchase the…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: During the course of economic activities of a company, it generally comes across, on occasions,…

Q: On January 1, 2020, Liam Company purchased bonds with face amount of P10,000,000 for P10,515,000.…

A: Bonds Face amount = P 10000000 Cash paid for bonds = P 10515000 December 31 , 2020 bonds are quoted…

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. Th…

A: Computation of carrying amount of bonds on december 31,2022:   Amount Interest income Interest…

Q: PUP CAF Corporation acquired a 4-year, P3,000,000 par value bonds when the prevailing rate of…

A: Unrealized gain or loss on investment: Investment gains that are not yet realized are gains that…

Q: At what amount will Mills report its investment in the December 31, 2021, balance sheet?

A: Premium on Bond's :— It implies that Face Value of Bond is Less than Carrying Value Or Market Value…

Q: On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value…

A: Investment in bonds: Investment in bonds is the scenario where the company acquires bonds either at…

Q: On January 1, 2021, PHILIPPINE COMPANY acquired 5-year, 15%, $8,000,000 H-bonds. The investments…

A: Given data: Principal amount = $8,000,000 Annual Coupon = 15%  Market rate = 14%

Q: Matanglawin Company purchased 8,000, P1,000 face amount, 9% bond to yield 10%. The carrying amount…

A: Gain on sale of Investment: In the case of investments that were sold, the amount by which the…

Q: Mills Corporation acquired as a long-term investment $230 million of 8% bonds, dated July 1, on July…

A: Journal entries are used to keep track of financial transactions. To create a journal entry, you…

Q: On January 1, 2020, Soledad Company purchased 10% bonds with face amount of P3,000,000. The bonds…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…

Q: June 1, 2022, when the prevailing market rate on similar instruments was at 14%, ABC Company…

A: An interest of 12% is paid every on every May 31. Date of purchase of bond = June 1 ,2022 Purchase…

Q: On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature…

A: If the entity changes their classification from FVOCI to FVTPL then the unrealized gain/ loss are…

Q: On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or…

A: Debt Investment: It is the investment where borrower pay back investment with interest

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: A bond is a financial instrument that is issued by large business entities and government bodies to…

Q: On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated…

A: When bonds were classified based on business model of collecting contractual cash flows and to sell,…

Q: Required: (Use continuous factors and round off all computations to the nearest peso.) 1. Assume the…

A: Business model of James Co. is to collect contractual cash flows. Amortized cost method to be used.…

Q: uming that the compan

A: As per protocol, allowed to answer first question and post the remaining in the next submission.

Q: On January 1, 2020 Chicken Wings Company purchased P3,000,000, 8% bonds of Fried Chicken Corporation…

A: Chicken Wings purchased bonds n which generated two types of return to it. First, Chicken wings…

Q: Ace Company purchased 10,000 bonds issued by Jack Company in 2018 for $63 per bond and classified…

A: Given information, Purchase price of bond = $63 Sale price of bond = $145 Unrealized Gain of Ace…

Q: Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: anner-UNF Corporation acquired as a long-term investment $360 million of 8% bonds, dated July 1, on…

A: Disclaimer Since you have posted a question with  multiple sub-parts , we will do the first three…

Q: If on Nov. 30, 2021, ABC sold the investment, what is the interest income for that year?

A: Bond Valuation: When bonds price is more than face value, the bonds are issued at premium and when…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.