January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 2. The carrying amount of the investment in bonds on December 31, 2021 is ?

Q: 22. On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a…

A: Faor Value Through the Statement of Other Comprehensive Income [FVTOCI]…

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 July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: GIVEN   On July 1, 2021 MIA Company purchased P500,000   face value AIM Company 8% bonds for…

Q: On January 1, 2021, M&M company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields…

A: Under Amortized cost method  we use yield as interest  rate for recognizing  investment income

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: Lowfood Corporation issued 10-year USD5,000,000 8 percent bonds on March 1, 2012, with a maturity…

A: The bonds are treated as a long-term liability because there are to be paid in more than a year. The…

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: McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2021. The bonds…

A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…

Q: On July 1, 2021, Darrell Company purchased as debt investments at fair value through profit or loss,…

A: The answer is given below. Explanation: At the end of year on 31st December 2021 company record the…

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Amortization is the process of writing off a bond slowly from the funds available at the residual of…

Q: On July 1, 2019, SIMP Company purchased P500,00 face value DRIP Company 8% bonds for P455,000 plus…

A: GIVEN   On July 1, 2019, SIMP Company purchased P500,00 face value DRIP Company 8% bonds for…

Q: On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On…

A: YTM can be calculated using the function Rate in the MS-excel.

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Statement of financial position includes: Assets account Liabilities account Shareholder's account…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 ncluding…

A: Introduction As per IAS if there is any financial asset and it is valued at amortized cost method…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Fair Price of the bonds on December 31, 2020 = Present value of principal + Present value of…

Q: On April 1, 2019 SanaPerfect Co. purchased 9%, 3-year, P3,000,000 face value serial bonds at a price…

A: value=Coupon amount*PVAF(YTM,n)+Redemption value*PVIF(YTM,n)

Q: PECAN Company issued ₱10,000,000 face value bonds at 95 plus accrued interest on March 1, 2021.…

A: Accrued Interest on bond = ₱10,000,000 × 12% × 4 months12 months  = ₱400,000  Number of bonds =…

Q: On July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: Valu of bond are as follows

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: January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified…

A: SOLUTION BONDS ARE UNITS ARE CORPORATE DEBT ISSUED BY COMPANIES AND SECURITIZED AS TRADEABLE ASSETS.

Q: On December 31, 2020, ABC Co. had outstanding 12%, P5,000,000 face value bonds maturing on December…

A: Bond conversion:   The process of in which the changing of a bond takes into shares is said to bond…

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

Q: Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on…

A: Bond interest and bond discount are amortized over the life of the bonds. Under the effective…

Q: January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified…

A: SOLUTION WORKING NOTE - AMORTIZATION TABLE -  YEAR OPENINGBALANCE (A) INFLOW (B) INTEREST INCOME…

Q: On January 1, 2020, Barbie Company purchased 4,000 of $1,000 face value, 10% bonds of Ken Company…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

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

A: The coupon interest rate is always paid on the face value of the bonds and is independent of the…

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 January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Step2 in solution.

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

A: A financial asset is an asset, the value of which is extracted from a contractual obligation.…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Solution: Computation of bond fair value Table values are based on: n= 2     i= 9.00%…

Q: On July 1, 2021, Darrell Company purchased as debt investments at fair value through profit or loss,…

A: Realised gain is the gain which is realised in cash after sale of bonds.…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Interest paid=Value of bonds×10%=P 1,000,000×10%=P 100,000

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

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

Q: On July 1, 2020, Morales Corp acquired P4,000,000 face value of X Corporation bonds with a nominal…

A: Held to Maturity securities are the securities held by the entry with the intention to retain it…

Q: , Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker's commission of…

A: Alaska Corporation purchased P1,000,000 bonds for P1,051,510

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: Glimmer Pools purchased $50,000 of 7% AKL bonds on January 1, 2018, at aprice of 104.2 when the…

A: Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is…

Q: On July 1, 2021 MIA Company purchased P500,000 face value AIM Company 8% bonds for P455,000 plus…

A: Debt investment is one type of investment made by individuals or businesses by purchasing large…

Q: At the beginning of this year, MM purchased P6,000,000, 9% face amount bonds. The interest is…

A: Bond interest : P 6,000,000 x 0.09 = P 540,000 per year Every year the total payment of Bond…

Q: On July 1, 2021, Darrell Company purchased as debt investments at fair value through profit or loss,…

A: As per conservatism principle we can anticipate losses and provide for it but we…

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

A: Fair value of the Bond = P500,000 Financial asset in our question is measured at FVTPL. Any change…

Q: January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified…

A: Interest income = P1,000,000 x 10% = P100,000 Principal = P1,000,000 Effective Interest rate = 12%…

Q: b. Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2022, for $562,500. This price…

A: A bond seems to be a fixed-income investment product that reflects an investor's debt to a borrower…

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A:

Q: Adrian Henry Company purchased P2,000,000, 12%, 4-year bonds at 102, excluding the interest on April…

A: Investment is referred to as an action under which the investor invests the money to get returns on…

Q: 13

A: An asset that is worth less than its book or net carrying value is considered impaired. In other…

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Carrying value at the end of 2019 P 5,333,620  Add interest payment P 500,000 5000000*10% Total…

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: January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified…

A: SOLUTION WORKING NOTE  AMORTIZATION TABLE -   YEAR OPENING BALANCE (A)  INFLOW (B) INTEREST…