On December 31, 2020, Alberta Inc. purchased $500,000, 10% bonds issued by Banff Ltd. The bonds have a maturity date of December 31, 2026. The market interest rate on December 31, 2020 was 9.5%. If Alberta Inc. accounts for this investment under the amortized cost model, what is the amount at which the Investment in Banff Ltd. Bonds will be reported on the statement of financial position at December 31, 2021, given that the current market interest rate is 9%? $490,523 $509,599 $519,448 $511,050
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- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.On December 31, 2020, Alberta Inc. purchased $500,000, 10% bonds issued by Banff Ltd. The bonds have a maturity date of December 31, 2026. The market interest rate on December 31, 2020 was 9.5%. If Alberta Inc. accounts for this investment under the amortized cost model, what is the amount at which the Investment in Banff Ltd. Bonds will be reported on the statement of financial position at December 31, 2021, given that the current market interest rate is 9%? $519,448 $509,599 $511,050 $490,523On January 1, 2019, Alpha Inc purchased $500,000, 9% bonds issued by Beta Corp. The bonds have a maturity date of December 31, 2024. The market interest rate on January 1, 2019 was 10%. If Alpha Inc accounts for this investment under the FVOCI model, what is the amount at which the Investment in Beta Corp. Bonds will be reported on the statement of financial position at December 31, 2021, given that the current market interest rate is 9.5%? $490,401 $481,046 $487,566 $493,728
- On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated interest rate of 12% per year collectible every December 31. The bonds were acquired to yield 11%. These bonds were classified based on business model of collecting contractual cash flows and to sell. On December 31, 2021 and December 31, 2022, the bonds were quoted at 104 and 102, respectively. At what amount should the investment be reported in its December 31, 2022 statement of financial position? Group of answer choices P10,200,000 P10,400,000 P10,000,000 P10,150,000On July 1, 2019, YYY Company paid P1,198,000 of 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on June 30 and December 31. The bonds were purchased to yield 8%. The effective interest method is used to recognize interest income from this long-term investment. What is the carrying amount of the investment in bonds on December 31, 2019?
- On January 1, 2026, ABC purchased term bonds (to be held by collecting contractual cash flows representing principal and interest) with face amount of P10M and stated interest at 12%. The stated interest is payable annually on December 31. The bonds are acquired to have an effective yield at 14%. The bonds mature on December 31 2030. Determine the amount of the investment to be shown in the financial position statement on December 31, 2027 when the market value at the reporting period is P9,150,000. Use 4-decimal PVF and round off your final answer to nearest peso.On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated interest of 10% per year payable annually on December 31. The bonds were acquired to yield 12%. The bonds are to be appropriately classified as financial asset at amortized cost.What is the carrying value of the investment as of March 31, 2020? * a. 1,116,375 b. 1,117,716 c. 1,127,104 d. 1,140,515On January 1, 2021, Blue company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2021, each bonds is selling at P1,075. The debt investment is classified as at FVPL. What was the carrying value of the debt investment at December 31, 2021?
- On January 1, 2020, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received January 1 of each year. Roosevelt's business model is to hold these bonds to collect contractual cash flows. Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare a bond amortization schedule. c. Prepare the journal entry to record the interest revenue and the amortization for 2020. d. Prepare the journal entry to record the interest revenue and the amortization for 2021.On January 1, 2021, Canada Corp. purchased bonds with a face value of P7,500,000 and a stated interest rate of 10% per year payable semi-annually every June 30 and December 31. The bonds were acquired to yield 11%. These were recorded as financial assets at amortized cost. On July 31, 2024, the bonds were sold at 111 including accrued interest. How much is the purchase price of the bonds? Round off to the nearest whole number.On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2020, each bonds is selling at P1,055.If the debt investments is classified as at amortized cost, what is the interest revenue from the bond investment for the year 2020?