Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The investment will be accounted for as a financial asset at amortized cost. It will be paid in installments of P800,000 plus 10% interest on the outstanding balance every Dec. 31, 2021. On Dec. 31, 2021, the remaining bonds have a fair value of P1,550,000. Identify the Investment in Bonds as of Dec. 31, 2021
Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The investment will be accounted for as a financial asset at amortized cost. It will be paid in installments of P800,000 plus 10% interest on the outstanding balance every Dec. 31, 2021. On Dec. 31, 2021, the remaining bonds have a fair value of P1,550,000. Identify the Investment in Bonds as of Dec. 31, 2021
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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On Jan. 1, 2021, ABC bought serial bonds with a face value of
P2,400,000 for P2,160,000 cash. The investment will be accounted
for as a financial asset at amortized cost. It will be paid in
installments of P800,000 plus 10% interest on the outstanding
balance every Dec. 31, 2021. On Dec. 31, 2021, the remaining bonds
have a fair value of P1,550,000.
Identify the Investment in Bonds as of Dec. 31, 2021
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