n Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was acquired for trading purposes and is accounted as FA‐FV‐PL The bonds mature on Sept. 1, 2023. Interest at 8% per annum is paid every Mar. 31 and Sept. 1. On Dec. 31, 2021, the bonds were selling at 96. Identify the Investment in Bonds as of Dec. 31, 2021
n Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was acquired for trading purposes and is accounted as FA‐FV‐PL The bonds mature on Sept. 1, 2023. Interest at 8% per annum is paid every Mar. 31 and Sept. 1. On Dec. 31, 2021, the bonds were selling at 96. 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 Feb. 1, 2021, ABC purchased P2,000,000 face
plus accrued interest. It was acquired for trading purposes and is
accounted as FA‐FV‐PL The bonds mature on Sept. 1, 2023. Interest
at 8% per annum is paid every Mar. 31 and Sept. 1. On Dec. 31,
2021, the bonds were selling at 96.
Identify the Investment in Bonds as of Dec. 31, 2021
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