On August 1, 20X2, White Co. acquired Black Co. bonds with a face value of P90,000 at 95 plus accrued interest. Interest of 12% per annum is payable semi-annually on April 1 and October 1. The bonds were issued on April 1, 20X2. Bonds of P30,000 mature at annual interval beginning April 1, 20X3. Required: a) Prepare the amortization table following the bond outstanding method. b) Prepare entries related to the bonds for the year 20X2-20X4.

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Q: On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Calculation of Interest: Particulars Amount (P) Cash Proceeds (Issue Price) 2,206,168 Less:…

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A: Bond Interest Expense in Effective Interest Method of Amortisation will be = Present Value of Bond *…

Q: Manly Company issued $400,000 of 9%, 10-year bonds at 102. Interest is paid annually, and the…

A: Bonds are defined as financial instruments used by companies to raise additional funds from the…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of…

A: Carrying value of bonds = $ 750590 Face value of bonds = $ 760000 Gain or loss on redemption of…

Q: On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of P4,000,000 for…

A: The face value of the bond is 4,000,000. The coupon rate on bond is 12% and the annual coupon rate…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Total amount of premium = Issue price - Face value = $1,050,000 - $1,000,000 = $50,000

Q: On August 1, 2021, Excel Company purchased at par P5million bonds with stated interest rate of 12%…

A: Lets understand the basics. We all know that bond can be purchased at the issue time or at mid of…

Q: On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of…

A: Introduction: A loan that amortizes is one with monthly payments that go toward the principle.…

Q: Assume that the bonds were classified as debt investments at fair value through profit or loss.…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 20x1, SPEED Company purchased 12% bonds, having a face value of P800,000. The bonds…

A: Bond is an investment security which is issued by large organizations to raise the fund. The bond…

Q: Assume the bonds are issued for $6,940,000 on January 1 to yield an effective interest rate of 6…

A: Interest Payments  Interest payments on government debt, such as long-term bonds, long-term loans,…

Q: On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds…

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Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION SCHEDULE OF BOND PREMIUM AMORTIZATION TABLE - DATE  CASH PAID  INTEREST EXPENSE  PREMIUM…

Q: Brownlee Company issued $525,000, 8%, six-year bonds for 110, with interest paid annually.Assuming…

A: Carrying value: The face amount of bond, less unamortized discount, or plus unamortized premium, is…

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the…

A: Issue price of bonds = (face value of bonds x present value of $ 1 at market interest rate for the…

Q: Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $109,000…

A: Number of periods = 5*2 = 10 Coupon rate=  9%/2 = 4.5% As the beginning carrying value is more than…

Q: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid…

A: Bond issued = $50,000 Interest rate on bond = 10% Number of years = 5 year Cash received = $52,100

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.…

A: Given: Value of the bond = $ 2,500,000 Bond rate = 9 % Price of the bond = $ 2,580,000

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: On January 1, Year 1 Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: SOLUTION- Bond: When the company needs money, the company issues fixed-income security that the…

Q: On January 1, Year 1, Narito Company purchased P100,000 face value 5-year bond of Wolf Corporation…

A: Impairment Loss Impairment can happen as a consequence of one-time or unique occurrences, such as a…

Q: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…

A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…

Q: 1. Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the…

A: 1. Any excess of the purchase consideration over the net assets acquired of an entity, is first…

Q: On January 1, 20x1, Kageyama Corporation issues P1,500,000 of 10% bonds at 97 due December 31, 2x10.…

A: Introduction:- A bond is a form of instrument in which the issuer (the debtor) owes the holder (the…

Q: On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756.…

A: The interest expense is the cost which a firm is required to pay for the amount borrowed in the form…

Q: Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $107,000…

A: The bonds are issued at premium when market rate is lower than the bonds payable.

Q: On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of…

A: Adjusting Entries- Adjusting entries refers to the entries made in the accounts at the end of the…

Q: Hambelton Ltd. issued $4,600,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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 July 1, Year 2, San Benon Company purchased 4,000 of the P1,000 face amount, 8% bonds of Oat…

A: San Benon classifies the securities as at amortized cost. It means the interest expense will be…

Q: On January 1, 20x1, Etsy Co. purchased 10%, P4,000,000 bonds for P4,171,968. The bonds are…

A:

Q: Record the entry for the purchase of the bonds by West Company on July 1.

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A: Bond refers to a fixed income instrument which represents that a loan is being made by an investor…

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A: Present Value: The value of today’s amount expected to be paid or received in the future at a…

Q: On January 1, 2020, Resty Company issued bonds with the face amount of P 10,000,000, 8% serial bonds…

A: Annual interest payment = Face value of bonds x stated rate of interest x no. of months/12 Annual…

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A: When any bond is issues at less than its face value then it is called bond issued at discount while…

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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A: Working Notes :-                       Company intended to collect the principal and…

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