On July 1, 2016, York Company purchased a long-term investment, P1,000,000 of Park Company's 8% bonds for P946,000, including accrued interest of P40,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2022, and pay interest annually on January 1. York Company used the effective interest method of amortization. 1. What is the interest income for 2016? a. 80,000 b. 90,600 C. 45,300 d. 40,000 2. On December 31, 2016, what is the carrying amount of the investment in bonds? a. 911,300 b. 916,600 c. 953,300 d. 960,600

Q: Garland Company received proceeds of $131600 on 10-year, 6% bonds issued on January 1, 2018. The…

A: Carrying value of a bond is the value of bond on a given date after deducting the discount and…

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, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: Face value of bond, on January 1, 2018 = P 4,000,000 Carrying value of bond on January 1, 2018 = P…

Q: Kingbird Corporation purchased on January 1, 2020, as a held-to-maturity investment, $50,000 of the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: carrying amount of the bonds on December 31, 2023?

A: Accrued Interest -:In computation, Accrued Interest relates to the proportion of interest that has…

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

A: A bond is a debt security that produces fixed income at a pre-determined rate. The bond issuer is…

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A: 12% bonds[Financial Asset @FVTPL]…

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A: Bonds:- A bond is considered as the written agreement between the borrower and lender, under which…

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: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Purchase price of bond                = P324000 Less: Accrued Interest                  = (P12000)…

Q: Garfield Company purchased, on January 1, 2017, as a held-to-maturity investment, $80,000 of the 9%,…

A: Workings: Held to maturity bond  = $80000 Purchased at $74086. It means purchased at discount.…

Q: Company P purchased $100,000 of subsidiary Company S’s bonds for $96,000 on January 1, 2015, when…

A:

Q: On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds…

A: Bond can be defined as financial instruments which is a source of capital for the companies as well…

Q: On October 1, 2021, Complex Company purchased a 12% P3,000,000 face amount-bond issue for P2,700,000…

A: A bond is a fixed interest bearing debt instrument issued by a company to finance its operation.…

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: Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments…

A: 1.Feherty Inc. decided to account 10 bonds of Donald Company as held to maturity, which would be…

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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, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: On January 1, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of…

A:

Q: Carow Corporation purchased on January 1, 2017, as a held-to-maturity investment, $60,000 of the 8%,…

A: Interest received (semiannually) = Face value of bonds x rate of interest x 6/12 months = $60,000 x…

Q: The Ripkin Company purchased 10%, $400,000 bonds of the Batter Up Company at par plus accrued…

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

Q: ISKO Corporation authorized the sale of P4,000,000 of 12%, 8-year debentures on January 1, 2016.…

A: Bonds- A bond is a debt instrument in which the bond issuer owes the debt to the holders and is…

Q: On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102.  If the…

A: Formula: Initial carrying amount of the investment = Cash proceeds from Issue price of the bonds -…

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?

A: cash payment = 1000000*111.5% + 1000000*15%*2/12 = 1140000   loss = 1200000-1110401= 9599

Q: Fowler Inc. purchased $75,000 of bonds on January 1, 2018. The bonds pay interest semiannually and…

A: Debt investments: The financial instruments which are bought by investors, or corporations, or…

Q: On July 1, 2017, Wheeler Company purchased $4,000,000 of Duggen Company’s 8% bonds, due on July 1,…

A: Note – As the interest payment is semiannual interest revenue is divided by 2. Therefore $175000…

Q: On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value…

A:

Q: On May 1, 2010, Kirmer Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July…

A: Bonds are a form of debt or loan issued by the company, on which company has to make regular…

Q: What amount should Dayrit report as interest receivable in its December 31, 2022 balance sheet?

A: Interest receivable on the bond is the amount of interest which has been computed on the basis of…

Q: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Given information, Face Value = P300,000 Purchase Price = P324,000 Interest rate on bonds = 12%

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, 2022, BTS Company purchased as debt investments at amortized cost, P1,000,000 of JK…

A: Interest revenue is the amount of revenue earned as interest during the given period. Effective…

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…

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A: The trading security is reported on at the fair value on the balance sheet of the firm. If there is…

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A: Solution- Calculation of Carrying value:   Interest paid = 1,000,000*10%*6/12 = 50,000   Interest…

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

Q: Mercer Corporation acquired $400,000 of Park Company’s bonds on June 30, 2018, for $409,991.12. The…

A: Solution: - Calculation of premium on bonds as follows under:-

Q: June 1, 2022, when the prevailing market rate on similar instruments was at 14%, ABC Company…

A: An interest of 12% is paid every on every May 31. Date of purchase of bond = June 1 ,2022 Purchase…

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 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…

Q: ell Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2018. The bonds…

A: Bonds- Bonds are the written debt of the company on which interest is paid at a predetermined rate…

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 July 1, 2026, ABC purchased 5,000 of the P1,000 face amount, 8% bonds to yield 10% per annum. The…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

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, 2016, Covid Corp., purchased debt securities for cash of P765,540 to be held as…

A:

Q: On July 1, 2003, New York Company purchased, as investment measured at amortized cost, P1,000,000 of…

A: Effective Interest method of amortization: It is the method for amortizing bond which is sold at…

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, 2017, Natifah Inc. acquires $500,000 of 8% bonds at a price of $552,970. The interest…

A: (2A)3 year amortization schedule Date.  Cash.         Interest.      Amor-.      Carrying 31/12…

Q: If on Nov. 30, 2021, ABC sold the investment, what is the interest income for that year?

A: Bond Valuation: When bonds price is more than face value, the bonds are issued at premium and when…