In 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified the investment as available-for-sale. In 2022, the market value increased to $320,000. In 2023, the market value of the investment declined to $310,000, and the investment was sold for $310,000.   Question Journal entries for 2023 would include:       Debit to Bond Investment - AFS of $300,000     Debit to Fair Value Adjustment - AFS of $20,000     Debit to Gain on Sale of Bond Investment - AFS of $10,000     Debit to Unrealized Holding Gains and Losses - OCI for $20,000

Q: Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%,…

A: SOLUTION- JOURNAL ENTRY  IS USED TO RECORD A BUSINESS TRANSACTION IN THE ACCOUNTING RECORDS OF A…

Q: On January 1,2020, Jerry Conpany acquired P6,000,000 of 12% face value bonds at P5,650,500 to be…

A: Annual interest payment =face value of bonds x rate of interest x year = P6,000,000 x 12% x 1 year =…

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: On February 18, 2021, Union Corporation purchased 600 IBM bonds as a long-term investment at their…

A: 1) These bonds are classified under available for sale for sale investment as these are held for…

Q: On January 1, 2020, the Widner Company acquired 12% bonds with a face value of $350,000 and…

A: Bonds refer to the financial instrument issued in the market by the company for the cash borrowed.…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

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

Q: What is the interest revenue reported by Giniling for the year 2019? A. P15,000 B. P18,000 C.…

A: Bond :- Bond is an instrument which is used by the Government & Companies to raise money by…

Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…

A: Unrealised gain or loss is the difference between fair value of securities as on reporting date and…

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: 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 Jan. 1, 2021, ABC acquired a 10%, 5-year, P2,000,000 face value bonds for trading purposes. The…

A: Given: Face Value of the bonds  1/1/2021 2000000 Coupon Rate 10% Bond Tenure in years 5…

Q: On January 1, 2019, Garfield AG made an investment in €70,000 of the 9%, 5-year bonds of Chester…

A: Journal entries          Date      Accounts and…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue to be recognized in 2019 = P3,756,000 * 10% = P375,600 Interest paid for the year…

Q: On January 1, 2019, Apollo Corporation purchased 4-year P8,000,000, 10% bonds at face value. The…

A: The bond was sold on 31 December 2021, which means it had a one year remaining life before maturity.…

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A Journal entry is a record of business transactions in the accounting system for an organisation.…

Q: Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On February 18, 2021, Union Corporation purchased 1,056 IBM bonds as a long-term investment at their…

A: Adjusting Entry:- The adjusting entry are prepared at the end of the particular period when…

Q: Surface Company purchased 1,000 bonds of Slick Company in 2018 for $760 per bond and classified the…

A: Number of bonds purchased = 1000 Purchase price of bonds= $ 760 per bond Sale price of bonds = $ 380…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Solution: Purchase cost of bonds = Purchase price - Accrued interest = P910,000 -…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Working note: Computation of carrying amount of bonds investment on April 1, 2020:

Q: On April 1, 2020, Purefoods Company purchased a bond for P910,000 including accrued interest and…

A: The amount by which the proceeds from the sale of investments were greater than the carrying value…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: The question is multiple choice question. On January 1, 2020, RED Company purchased 12% bonds with…

Q: On July 1, 2020, Riverbed Company purchased $3,840,000 of Duggen Company’s 8% bonds, due on July 1,…

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

Q: Tanner Co. acquired $120,000 of 6% bonds, dated July 1, on July 1, 2021 by paying $100,000. Tanner…

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

Q: On January 1, 2020, Garland Company purchased bonds with a face amount of P8,000,000 for P7,679,000…

A: Investment is recognized at fair value and that value of the investment is increased by the interest…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Given as, Face value 500000 Coupon rate 8% Issue price 475126 Life of bond 3…

Q: On April 1, 2021, Eminem Company purchased 4,000 of the P1,000 face amount, 8% bonds of Stan Company…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…

A: FASB indicates a non-profit private orientation that is engaged in providing guidelines to deal with…

Q: At the end of 2018, Terry Company prepared the following schedule of investments in…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue for the year 2019 = Bond investment * Effective interest rate

Q: On January 1, 2019, Pancit Company purchased Canton Corporation, P1,000,000, 12% bonds for…

A: The debt investment can be defined as the money lent by the investor to firms expecting that the…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: Interest income is described as the income which individual or an investor receives on the amount of…

Q: Sycamore, Inc. purchased €100,000 of 8 percent bonds of Alvarado Industries on January 1, 2022, at a…

A: When you own an asset that has deteriorated in value but do not sell it to realize the loss, you…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Bonds are purchased on 1 april 2020 at 910000 which include interest of P20,000 of three month and…

Q: on December 31, 2023 and carry a 13% interest rate. Interest is receivable annually on December 31.…

A: Bonds, also known as fixed income instruments, are a typical way for governments and companies to…

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: Sandhill Company purchased, on January 1, 2020, as an available-for-sale security, $69,000 of the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On February 18, 2018, Union Corporation purchased 10,000 shares of IBM bonds as a long-term…

A:

Q: Penta Company purchased 1,000 bonds of Gone Company in 2018 for $810 per bond and classified the…

A: In 2019  Purchase Price = $810 Value as on 31st Dec, 2019 = $272 Unrealized Holding Loss  =($810 -…

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, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: Please find the answer to the above question below:

Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…

A: Journal entries : Date Accounts title & Explanation Debit $ Credit $ May 3…

Q: At the end of 2018, Terry Company prepared the following schedule of investments in…

A: The corporation invests its portion of available money on non-current investments such as the…

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: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A:

Q: Goofy Inc. bought a sizeable amount of Crazy Co.'s bonds for $205,000 on May 5, 2020, and classified…

A: Initially  bond are classified as investment  held for sale. On December 31, 2020 that is the…

Q: On January 1, 2019, Ron Company purchased 12% bonds with face amount of P5,000,000 for P5,380,000…

A: Face value of bond=5,000,000  Rate of interest=12% Interest Income = Rate of Interest * Face Value…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Gain = Sale value - Ending fair value of bonds

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…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: Bond is purchased by an organisation in order to invest the surplus amount in a low risk asset. The…