On April 30,2020, ABC Corp. purchased bonds with a face value of P1,400,000 and interest rate of 9% to be paid annually every Dec. 31 until the end of 2024. It paid P1,360,000 plus accrued interest plus transaction fee of P10,000. What is the journal entry to record the purchase if ABC accounted it as a FA‐FV‐PL? Use Accrued Interest Receivable in your answer. Provide the total cash outflow relating to the acquisition
On April 30,2020, ABC Corp. purchased bonds with a face value of P1,400,000 and interest rate of 9% to be paid annually every Dec. 31 until the end of 2024. It paid P1,360,000 plus accrued interest plus transaction fee of P10,000. What is the journal entry to record the purchase if ABC accounted it as a FA‐FV‐PL? Use Accrued Interest Receivable in your answer. Provide the total cash outflow relating to the acquisition
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 5RE
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On April 30,2020, ABC Corp. purchased bonds with a face value of
P1,400,000 and interest rate of 9% to be paid annually every Dec. 31
until the end of 2024. It paid P1,360,000 plus accrued interest plus
transaction fee of P10,000. What is the
purchase if ABC accounted it as a FA‐FV‐PL? Use Accrued Interest
Receivable in your answer.
Provide the total
acquisition.
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