On January 1, 2021, Jackie Company issued P8,000,000 8% eight-year bonds. Similar bonds had an effective rate of 8.8%. On yearend, the bonds had a market value quotation of 88. Jackie opted to measure the bonds at fair value. How much is the net effect of bonds on the 2021 Statement of Comprehensive Income? [Indicate whether it is a gain or loss] How much is the discount/premium amortization during 2022? [Indicate whether it is a discount or premium]

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A: Under Amortized cost method  we use yield as interest  rate for recognizing  investment income

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A: Proceeds (Issue price) of bonds=Present value of semiannual interest payment+Present value of…

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 8% bonds with a book value of…

A: A bond is the long-term debt of an entity. The bonds are paid in more than one year. The bonds…

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A: Bonds are a form of debt or liability for the business, on which regular interest payments also…

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A: Bond Payable: Long-term debt instruments, such as bonds due, are issued by businesses, hospitals,…

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

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A: Redemption of Bond Bond is considered to be one of the debt instrument which are provided to the…

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A: 1. Calculation of present value of bond and interest Bond value= $ 200000 Time = 5years ( semi…

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A: The financial transactions are initially recorded in the form of a journal entries.

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A: solution given Face value 4000000 Issue price 3756000 Market rate of interest 10%…

Q: On January 1, 2021, Mawi Co. issued 1,000, P4,000, 12%, 3 years bonds for P4,198,948. Principal is…

A: The question is based on  concept of valuation of bond , value of bond is calculated as discounted…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A:

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Discount on bonds payable = Par value of bonds - Issue price of bonds Interest expense = Issue price…

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A: Carrying Value of the bonds on Dec 31, 2019 = $1,700,000 Call Price = 105 (it means the bonds are…

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: Bogart . issued P800,000 of 12% face value bonds for P851,706. The bonds which were dated and issued…

A: Current price of the bond is the present value of all the cash flows payable on the bond discounted…

Q: On January 1, 2019, Learned Inc. issued $105 million face amount of 20-year, 14% stated rate bonds…

A:

Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…

Q: On January 2, 2016, ABC COMPANY issued P1,500,000 of10% bonds at 97 due December 31, 2025. Legal…

A: Redemption is the return of an investor's principal on a fixed income security such as a bond.…

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A: The bond issued at 102 means the bond has issued at premium & issue price is 102% of face value.…

Q: On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including…

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

Q: On July 31, 2018, Snowday Corporation issued $100,000, 5%, 20-year bonds for $88,443 when the market…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of…

A: Bonds appear to be a financial vehicles  whereby an investor or individual lends money to a company…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: First we need to calculate the fair value of the bond. = Coupon x PVAF(r,n) + FV x PVF(r,n) Where,…

Q: On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature…

A: Solution: Bond Amortization Schedule (Partial) Period Cash Paid Interest Expense Discoount…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: A bond seems to be a sort of financial instrument used by a business to borrow money. A bondholder…

Q: On January 1, 2020, Merry Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…

Q: On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is…

A: Accrued interest = Face value of bonds x rate of interest x no. of months / 12 months where, Rate of…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds retired as of December 31, 2022 = Present value of principal + Present…

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 November 1, 2020, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1,…

A: Accrued Interest: It is the amount of interest on a loan  or a financial obligation which  has been…

Q: On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on…

A: Bonds are an obligation on an entity which is to be repaid on its maturity date. These are issued…

Q: (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated…

A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…

Q: rated issued $0.81 million of 7.5%, 10-year bonds on July 1, 2019, at face value. Interest is…

A: Journal Entries are passed in accordance to IFRS-9 and ASPE -3856.

Q: On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on…

A:

Q: n January 1, 2019, Mitsubishi Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Solution: Discount on bond payable, Jan 1 , 2019 = face value - issue price  = 9000000 - 8451000 =…

Q: On January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market…

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

Q: bonds

A: Increase in equity = (Cash received on issue of convertible bonds- Interest payments) -  (Cash…

Q: On January 2, 2020, Lucban Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Solution : Let us first note down the given information : Coupon rate of bond      =9% Market…

Q: On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P2,000,000 due March 1,…

A: Computation of issue price of bond and discount on issue of bond

Q: On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…

Q: On January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is…

A: The bonds are the financial instruments for the business that are issued by business to raise money…

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total discount on issue of bonds = Face value of bonds - issue value of bonds = P8,000,000 -…

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

A: