How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus accrued interest?

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 January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

A:

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: On January 1, 2020, Hilichurl Company purchased 4,000 of P1,000 face value, 10% bonds of Ivory…

A: The effective interest rate uses the carrying amount of the bond to calculate interest income.…

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 April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Under ACM bo d should  be  measured  at fairvalue after adjusting  transaction costs

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

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: 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 August 1, 2021, Excel Company purchased at par P5million bonds with stated interest rate of 12%…

A: Lets understand the basics. We all know that bond can be purchased at the issue time or at mid of…

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, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000…

A: Interest revenue for 2019 = P3,756,000 * 10% = P375,600 Interest paid for 2019 = P4,000,000*9% =…

Q: On March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: interest inco

A:

Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

A: Bond Valuation The issue of bond either in par value or in discount or in premium as well.  Bond…

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

A:

Q: "Oh January 1, 2019, TYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a…

A: Answer : Option d - Answer not given

Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…

A: Following are the Journal entries which are required to be pass in relation to sale:

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Given that the company follows straight line method of amortization, under this method discount on…

Q: On January 1, 2021, EXPERT EFFORT Company purchased serial bonds with face value of P3,000,000 and…

A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

Q: On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value…

A:

Q: On January 1, 2020, Aspin Company purchased $1,200,000, 14% bonds of Bulldog Company for $1,381,934,…

A: If the financial asset is measured at amortized cost, on the subsequent reporting date, the…

Q: On January 1, 2021, Mega Corporation purchased P1,000,000, 12% bonds for P1,065,000, a price that…

A: Introduction: Debt funds invest in assets that provide fixed interest, such as corporate bonds,…

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: n March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding accrued…

A: Answer: Bonds are the debt instruments issued by the company to the general public to raise funds…

Q: On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase…

A: The carrying value of bonds payable is calculated after making adjustment for amortized discount or…

Q: On March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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 January 1, 2021, Canada Corp. purchased bonds with a face value of P7,500,000 and a stated…

A: Purchase Price of Bond: The price of a bond is the current discounted value of the future cash flow…

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, 2018, CEBU Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Bonds refers to the borrowing security issued by the company to raise fund from the market by making…

Q: On January 1, 2018, CEBU Company purchased 12% bonds, having a maturity value of P800,000, for…

A: As per PFRS 9 the Financial assets shall be initially record at Fair value and add or subtract any…

Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: Accumulated other comprehensive income (OCI) includes unrealized gains and losses reported in the…

Q: On February 1, 2021, Cromley Motor Products issued 10% bonds, dated February 1, with a face amount…

A: Comments; since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Present Value of Interest Component = Annual Interest Payment x Cumulative Present Value Factor @…

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Carrying value of bond = present value of all cashflows  Bond will mature December 31st, 2021 hence,…

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: 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, 2018, Rei Company obtained $4,000,000 of 12% face value bonds at $3,767,000 to be held…

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

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: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A:

Q: On July 1, 2016, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for…

A: Effective interest rate method of amortization is a process of amortizing premium on bond or…

Q: On January 1, 2019, Tigreal company issued 5,000 of its 5-year, P1,000 face value, 11% bonds dated…

A: Carrying value of a bond refers to the net final value computed between the bond's face value adding…

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A:

Q: On January 1, 2020, Clown Company acquired P8,000,000 12% bonds to be held as financial assets at…

A: The amortization table shows the details of interest income, interest received, and the carrying…