On January 1, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held financial assets at amortized cost with a 14% effective yield. Interest on bonds is payable annually on December 31 and bonds mature on January 1, 2022. The effective interest method of amortization is used. The quoted price of the bonds is as follows: December 31, 2018: 97 December 31, 2019 : 98 June 30, 2020 : 99 The carrying amount of investment on December 31, 2018 is   P3,719,620 P3,767,000 P3,814,380 P3,880,000 P4,000,000

Q: July 1, 2019, Jelli&Tin Company purchased P500,00 face value Red Cup Company 8% bonds for P455,000…

A: SOLUTION LOSS ON SALE ON SECURITY IN 2020 = ACCRUED INTEREST UPTO FEB 1 2020 Is 1.5 MONTHS. =…

Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

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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…

Q: On January 1, 2021, Demeanor Company purchased bonds with face amount of P5,000,000 to be held as…

A: Bond is an investment security which provides a fixed interest income to the bondholders. The…

Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

A:

Q: On January 1, 2020, Blossom Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The…

A: Under the effective interest method of amortization of discount or premium, the difference between…

Q: On January 1, 2020, Hilichurl Company purchased 4,000 of P1,000 face value, 10% bonds of Ivory…

A: The effective interest rate uses the carrying amount of the bond to calculate interest income.…

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A: No.  Account Titles & Explanation   Debit   Credit  (C)   Interest Receivable ($110,000 * 9%)…

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Under ACM bo d should  be  measured  at fairvalue after adjusting  transaction costs

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

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 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…

A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

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 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 March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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 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: interest inco

A:

Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

A: Bond Valuation The issue of bond either in par value or in discount or in premium as well.  Bond…

Q: On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000…

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

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A:

Q: "Oh January 1, 2019, TYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a…

A: Answer : Option d - Answer not given

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: Given that the company follows straight line method of amortization, under this method discount on…

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A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: The current price of a bond is the total value for which a bondholder will be able to purchase the…

Q: n March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding accrued…

A: Answer: Bonds are the debt instruments issued by the company to the general public to raise funds…

Q: On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase…

A: The carrying value of bonds payable is calculated after making adjustment for amortized discount or…

Q: On March 1, 2026, ABC purchased a 12% P3M face amount of bond, issue for P2,700,000 excluding…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…

A: Semiannually interest receipt = Face value of bonds x rate of interest x 6/12 months = $20,000,000 x…

Q: On January 1, 2021, Canada Corp. purchased bonds with a face value of P7,500,000 and a stated…

A: Purchase Price of Bond: The price of a bond is the current discounted value of the future cash flow…

Q: On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value…

A: Investment in bonds: Investment in bonds is the scenario where the company acquires bonds either at…

Q: On January 1, 2018, CEBU Company purchased 12% bonds, having a maturity value of P800,000, for…

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

Q: On January 1, 2018, CEBU Company purchased 12% bonds, having a maturity value of P800,000, for…

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

Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: Accumulated other comprehensive income (OCI) includes unrealized gains and losses reported in the…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Present Value of Interest Component = Annual Interest Payment x Cumulative Present Value Factor @…

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,…

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A: A bond is a financial instrument that is issued by large business entities and government bodies to…

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A: When bonds were classified based on business model of collecting contractual cash flows and to sell,…

Q: On January 1, 2018, Rei Company obtained $4,000,000 of 12% face value bonds at $3,767,000 to be held…

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

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: Discount = Face value of bonds - Amount received = $110000-99611 = $10389 Cash received= Face value…

Q: On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to…

A: Grana Inc. purchased 13% bond P 500,000 Yield = 10%  Duration = 5 years  Lets suppose par value bond…

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A:

Q: On July 1, 2016, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for…

A: Effective interest rate method of amortization is a process of amortizing premium on bond or…

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A:

Q: On January 1, 2020, Clown Company acquired P8,000,000 12% bonds to be held as financial assets at…

A: The amortization table shows the details of interest income, interest received, and the carrying…