On April 1, year 1, the entity purchased P200,000 face value, 9% Treasury Notes for P198,500, including accrued interest of P4,500. The notes mature July 1, year 2, and pay interest semi-annually on January 1 and July 1. It uses the straight-line method of amortization and intends to hold the notes to maturity. The entity does not elect the fair value option for recording the securities. In its October 31, year 1 balance sheet, the carrying amount of this investment should be?
On April 1, year 1, the entity purchased P200,000 face value, 9% Treasury Notes for P198,500, including accrued interest of P4,500. The notes mature July 1, year 2, and pay interest semi-annually on January 1 and July 1. It uses the straight-line method of amortization and intends to hold the notes to maturity. The entity does not elect the fair value option for recording the securities. In its October 31, year 1 balance sheet, the carrying amount of this investment should be?
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 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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On April 1, year 1, the entity purchased P200,000 face value, 9% Treasury Notes for P198,500, including accrued interest of P4,500. The notes mature July 1, year 2, and pay interest semi-annually on January 1 and July 1. It uses the straight-line method of amortization and intends to hold the notes to maturity. The entity does not elect the fair value option for recording the securities. In its October 31, year 1 balance sheet, the carrying amount of this investment should be?
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