On August 1 of the current year, Fleetwood Company purchased 5,000 , P1,000 , 12% bonds on Ritchie Company at 104 plus accrued interest . The bonds pay interest semiannually on May 1 and November 1. On December 1 of the current year, Fleetwood sold 2,000 of the bonds at 102 plus accrued interest. What is the gain or loss on sale of investment? indicate if gain or loss

Q: Clover Company purchased P3,000,000 of bonds at par. The entity has elected the fair value model for…

A: Bonds purchase value = P3000000 Annual Interest = P120000 Fair value of bonds = P2823000

Q: Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31,…

A: a. Account Titles and Explanation Debit Credit Investment in trading securities $50,000…

Q: Blossom Corporation had the following transactions relating to debt investments: Jan. 1, 2022…

A: Interest accrued on Dec. 31, 2022 = Investment in bonds x rate of interest x no. of months/12 =…

Q: Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires…

A: Introduction :- Ball Co. bonds with a face value of 500,000 and a 10% interest rate are purchased by…

Q: Carow Corporation purchased on January 1, 2020, as a held-to-maturity investment, $60,000 of the 8%,…

A: When effective interest method is used, the interest expenses are computed based on effective…

Q: The following Cato Corporation transactions are for bonds that were purchased as a trading…

A: A statement of financial position is a representation of an individual's personal or corporation's…

Q: On July 1, 2003, East Company purchased as a long-term investment, P500,000 face amount, 8% bonds of…

A: The interest receivable or cash receipts for interest is calculated on the basis of face value of…

Q: On July 1, Year 1, ABC Corp purchased 6.00% bonds having a maturity value of $100,000 for $105,079.…

A: Correct option is a. $142 Unrealized gain or loss recorded under OCI under December 31 year 1 is…

Q: Sandhill Corporation had the following transactions relating to debt investments: Jan. 1, 2022…

A: Investment in bonds is considered as a long term investment but the interest accrued on them is…

Q: On July 1, 2021, Dreeben Company acquired P600,000 (face value), 10%, P1,000 bonds at 99 plus…

A: As Given in the question Dreeben Company purchased P 600,000 (face value) at  10%, P 1,000 bonds at…

Q: Hey Company' investments in debt and equity securities reveals the following information: a) On…

A:

Q: On January 1, Year 2, Grand Company purchased as held for collection investment P1,000,000 face…

A: On December 31, Year 2: Interest receivable on bonds =1,000,000*8%=P80,000 Interest…

Q: Linton Ltd. purchased 70 Horner AG 9%, 10-year, €1,000 bonds on January 1, 2022, for €70,000. The…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: On January 1 of the current year, Baker Corp. purchased $50,000 of Chocolate Inc. bonds. These bonds…

A: The Investments in bonds are held till maturity. The Investments in bond is measured at amortized…

Q: Keyser Company acquired $3,514,000 face value, 9% bonds as an available-for-sale investment on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50…

A: Bonds are the form of investments or loans given by the company. Interest is received or paid on…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: Yale Co. purchased a bond on October 4 of the current year for $45,000 and classified it as…

A: Available-for-sale investments: Available-for-sale investments are the investments in debt or equity…

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 October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interest…

A: Bonds are a form of loan or debt, that is being issued by the business. Regular interest payments…

Q: entries

A:

Q: In 2021 and 2022, Norman Company had the following transactions related to investments in bonds.2021…

A:

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

A: Accrued interest is one of the current asset being held by the business. This means interest revenue…

Q: The following information relates to the debt securities investments of Sunland Company. 1.   On…

A: Working Notes: $324,000 x 10% x 4/12 = $10,800            October 1 To Feb 1 is 4 months. So,…

Q: Carow Corporation purchased, as a held-for-collection investment, $60,000 of the 8%, 5-year bonds of…

A: No. Account Titles and explanation Debit Credit a. Investment - Held-to-maturity…

Q: 4. ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31,…

A: Bond payable is a financial instrument in the nature of debt issued by the company to raise…

Q: On January 1, 2022, BTS Company purchased as debt investments at amortized cost, P1,000,000 of JK…

A: Interest revenue is the amount of revenue earned as interest during the given period. Effective…

Q: On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at…

A: Journal entry is the one where the transactions of the business are recorded in the books of the…

Q: Lancaster Company carried out the following transactions in bond investments held for trading during…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: On January 1, 20x1, Dagul Co. acquired 10%, P4,000,000 bonds for P3,807,853. The principal is due on…

A: Date Amount collected Interest Amortization Present value 01.01.20x1 0     3807853 31.12.20x1…

Q: HodsonCorp. purchased ten $1,000 8% bonds of Eagle Corporation when the market rate of interestwas…

A: Present value: It can be defined as the current value of a series of cash payments to be made in the…

Q: On January 1, 20x1, Eduard Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: n May 1, Knox Inc. purchases $100,000 of 10-year, 6% Madison Corporation bonds dated March 1 at 100…

A: Interest on May 1 = Face value of bonds x rate of interest x no. of months / 12 = $100,000 x 6% x…

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

A:

Q: On February 1, Hansen Company purchased $84,000 of 5%, 10-year Knight Company bonds at their face…

A: Accrued interest=Face value*coupon rate*n/12

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

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: On December 31, the bonds had a fair value of $203,700. The entry to record the year-end adjustment…

A: At the time of reporting period, the gain or loss on holding the bond should be accounted. If the…

Q: Barney Company purchased 10,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of…

A: Face value of 5000 bonds P 1000face amount =P5000000Carrying value of 5000 bonds(9750000 /2)…

Q: On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face…

A: Calculate the amount of interest received on $120,000 from February 1 to July 1 (5 months).

Q: Compute for the gain or loss on selling Jason Company bonds.

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On May 1, 20X1, Starlight Company purchased $750,000 of Gazing Corp's 12% bonds at 100 plus accrued…

A: Journal entries shows the recording of the transaction during an accounting year and every…

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…

Q: On January 1, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

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

Q: On February 1, Hansen Company purchased $108,000 of 5%, 15-year Knight Company bonds at their face…

A: Interest received july 1=108,000×5%×612=$2,700