On Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was acquired for trading purposes and is accounted as FA‐FV‐PL The bonds mature on Sept. 1, 2023. Interest at 8% per annum is paid every Mar. 31 and Sept. 1. On Dec. 31, 2021, the bonds were selling at 96. Identify the following in good accounting form: A. Investment in Bonds as of acquisition B. Interest income for the year C. Unrealized Holding Gain/Loss through P/L for year 2021

Q: On July 1, 2020, West Company purchased for cash, sixteen $10,000 bonds of North Corporation to…

A: Introduction Bonds issued with discount: Bonds are financial instrument which represents company’s…

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

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Q: On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding…

A: Investment is the amount of money invested by an individual or entity in securities, shares and…

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

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…

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A: Interest method of amortization: This is a method useful for bonds which are sold at a discount. The…

Q: On January 1, 2021, Carrow Company issued 11% bonds in the face amount of P1,000,000 that mature on…

A: Bonds are a form of loan or debt that is being taken by the business, on which regular interest…

Q: On January 1, 2020, Marin Company purchased 6% bonds, having a maturity value of $550,000 for…

A: When the business model for the investment is to earn periodic income and capital gain, the…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for…

A: There are two methods of amortizing the premium or discount of bonds that are issued at a price…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: Bond purchased: In order to obtain money from investors who are prepared to lend them money for a…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue for 2019 = P3,756,000 * 10% = P375,600 Interest received for 2019 = P4,000,000 * 9%…

Q: On January 1, 2021, Mirakulo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to…

A: Carrying amount of the bond = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…

A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

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A: Bonds Payable It is the amount owed to bond holders by the issuer and is a liability account

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: On August31,2021, DASHER Company issue dat 104 plus accrued interest, three thousand 10% bonds with…

A: Answer: The carrying value of a bond refers to the net amount between the bond’s face value plus any…

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A: Step 1 A financial asset is a non-physical asset whose value is derived from a contractual claim,…

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A: Step 1 Journal is the Part of Book Keeping.

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A: Bonds- Bonds are those monetary securities that are issued by banks, governments, companies so as to…

Q: On January 1, 2020, Oriole Company purchased 6% bonds, having a maturity value of $620,000 for…

A: Solution A Bond represents a loan to company or government in return of this company pay a fixed…

Q: On January 1, 2020, Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on…

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

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Q: On March 1, 2018, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2018,…

A: Requirement 1   Determine the amount of accrued interest that was included in the proceeds received…

Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…

A: Following are the Journal entries which are required to be pass in relation to sale:

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A: The bonds are issued at discount when the coupon rate of bonds is lower than the stated rate of…

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: The question is based on the concept of Financial Accounting.

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

A:

Q: Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2018 for $6,025,480 plus…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: A bond is a financial instrument that allows an issuer to raise funds by putting the issuer in the…

Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: n Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was…

A: Step 1 We determine the Closing Balance Investment in Bonds on 31 Dec 2021 by Journal entries.

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A: A bond is an instrument of raising funds. It has a fixed interest rate which is the paid by the…

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A: Bonds refers to the borrowing security issued by the company to raise fund from the market by making…

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A: a. Prepare the journal entry at the date of the bond purchase. b. Prepare the journal entries to…

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A: As per PFRS 9 the Financial assets shall be initially record at Fair value and add or subtract any…

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A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Carrying value of bond = present value of all cashflows  Bond will mature December 31st, 2021 hence,…

Q: On December 31, 2014, Dadan Company had outstanding 12%, P5,000,000 face value bonds maturing on…

A: Bond conversion refers to the procedure of converting a bond into stock. It is entirely dependent on…

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A: Lets understand the basics. When debt investment purchased and designated at FVTPL then interest…

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

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A:

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,00 value bonds at 92. The company paid…

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