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?

Q: On January 1,2020, Jerry Conpany acquired P6,000,000 of 12% face value bonds at P5,650,500 to be…

A: Annual interest payment =face value of bonds x rate of interest x year = P6,000,000 x 12% x 1 year =…

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, 2021, Peru Company purchased P5,000,000 face amount, 17% bonds. The bonds were…

A: Interest income recorded for the year is based on the carrying value of bonds at the beginning of…

Q: On February 18, 2021, Union Corporation purchased 600 IBM bonds as a long-term investment at their…

A: 1) These bonds are classified under available for sale for sale investment as these are held for…

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 June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…

A: Bonds are a type of long-term debt that is issued by the company to capital. The bonds come with a…

Q: 9. On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: Discount on company’s bonds  = 500000-475126= 24874 interest =8% x 500000 = 40000 interest income at…

Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Year Cash flows (I) pvf @9% (II) (I)*(II) 2020 40000 0.9174 36696 2021 40000 0.8417 33668 2022…

Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $250 million of 8% bonds, dated…

A: Journal: Recording of a business transactions in chronological order.

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, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of…

A:

Q: anuary 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s commission…

A: The comprehensive statement income includes all those unrealized income or losses which can not be…

Q: On February 18, 2021, Union Corporation purchased 1,056 IBM bonds as a long-term investment at their…

A: Adjusting Entry:- The adjusting entry are prepared at the end of the particular period when…

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

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

A:

Q: Tanner Co. acquired $120,000 of 6% bonds, dated July 1, on July 1, 2021 by paying $100,000. Tanner…

A: Journal:- These are prepared by the companies with debit and credit sides in order to match the…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Given as, Face value 500000 Coupon rate 8% Issue price 475126 Life of bond 3…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s…

A: INITIAL RECOGNITION YEAR CASH FLOWS PVF @ 9%   2020 40000 0.9174 36696 2021 40000 0.8417…

Q: On Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The…

A: Given: The value includes face value of P2,400,000 for P2,160,000 cash. It will be paid in…

Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: A financial asset is an asset, the value of which is extracted from a contractual obligation.…

Q: On January 1, 2021, Mega Corporation purchased P1,000,000, 12% bonds for P1,065,000, a price that…

A: Introduction: Debt funds invest in assets that provide fixed interest, such as corporate bonds,…

Q: What is the initial cost of the debt investment?   2. What is the carrying amount of the debt…

A: Initial cost of the debt investment is the cost which has been paid by the company (which is OP…

Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

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: On January 1, 2020, Ayayai Corporation purchased 339 of the $1,000 face value, 9%, 10-year bonds of…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. Th…

A: Computation of carrying amount of bonds on december 31,2022:   Amount Interest income Interest…

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 Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cash flows…

A: Given: ABC purchased bonds based on the purpose of both that includes the contractual cash flows…

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 January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for…

A: To calculate initial price of bond the formula is: Price of bond=C×1-(1+r)-nr+FV(1+r)nWhere,…

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: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: Fair value of the Bond = P500,000 Financial asset in our question is measured at FVTPL. Any change…

Q: On January 1, 2021, Paraguay Company purchased P3,000,000 face amount, 9% bonds. The bonds were…

A: If the asset generates interest income and other income like capital gains, and the entity decides…

Q: On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature…

A: If the entity changes their classification from FVOCI to FVTPL then the unrealized gain/ loss are…

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

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

Q: On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated…

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

Q: nds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and…

A: The answer has been mentioned below.

Q: uming that the compan

A: As per protocol, allowed to answer first question and post the remaining in the next submission.

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

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

Q: On January 1, 2021, All-Good Company purchased a bond with face amount of P3,000,000 for P2,500,000…

A: Discount on bonds purchased = Face value of bonds - price paid = 3000000 - 2500000 = P500,000

Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

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 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, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

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

Q: On January 1, 2021, JAPAN COMPANY purchased 12% bonds with face amount of $ 5,000,000 for $…

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…