On July 1, Year 2, San Benon Company purchased 4,000 of the P1,000 face amount, 8% bonds of Oat Corp. for 3,692,000 to yield a 10% per annum. The bonds, which mature on July 1, Year 5, pay interest semiannually on January 1 and July 1. San Benon classifies the securities as at amortized cost. What is the investment carrying value at December 31, Year 2?

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A: All financial assets are initially measured at fair value plus or minus, in the case of a financial…

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL ENTRY RECORDS A BUSINESS TRANSACTION IN ACCOUNTING SYSTEM FOR AN ORGANIZATION.

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A: Bonds are a form of debts taken by the company. But the company who is purchasing bonds will be…

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A: a. Account Titles and Explanation Debit Credit Investment in trading securities $50,000…

Q: On

A:

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: On August 1 of the current year, Fleetwood Company purchased 5,000 , P1,000 , 12% bonds on Ritchie…

A: Sale value of bonds = No. of bonds sold x sales price = 2000 x P1000 x 102/100 = P2,040,000

Q: On January 1, Year 1 Navara Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL IS A COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

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A: The question asked about the balance recorded in Other comprehensive income (OCI) and amount…

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A: The interest receivable or cash receipts for interest is calculated on the basis of face value of…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

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A: Present value interest factor(PVIF) and Present Value Interest factor Annuity(PVIFA) are the rates…

Q: On January 1, 20x1, Dagul Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…

A: Amortization of bonds: When bonds are purchased at more or less than the face value, the difference…

Q: Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Assume that the bonds were classified as debt investments at fair value through profit or loss.…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: purchased trading investment bonds for $42,000 at par. At December 31, Cullumber received annual…

A: Investment bond is an financial debt instrument in which an authorized bond issuer owes a debt to…

Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5 year bond of Wolf Corp for…

A: Ii

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A: Working Notes :-                                  Discount on purchase of…

Q: On January 1 of the current year, Baker Corp. purchased $50,000 of Chocolate Inc. bonds. These bonds…

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Q: Determine the goodwill or gain on bargain purchase from the above acquisition. 2. Give the adjusting…

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A:

Q: On January 1, 20x1, Santa Co. acquired 10%, ₱1,000,000 bonds at 92. Commission paid to brokers…

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

Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: milar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive…

A: 1&2 Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1,…

Q: . & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and…

A:

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

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Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION SCHEDULE OF BOND PREMIUM AMORTIZATION TABLE - DATE  CASH PAID  INTEREST EXPENSE  PREMIUM…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: Mills Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on July…

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

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A: Journal Entry' Date Particular LF Debit ($) in million Credit ($) in million July 1, 2021…

Q: On January 1, Year 1 Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: SOLUTION- Bond: When the company needs money, the company issues fixed-income security that the…

Q: On January 1, Year 1, Narito Company purchased P100,000 face value 5-year bond of Wolf Corporation…

A: Impairment Loss Impairment can happen as a consequence of one-time or unique occurrences, such as a…

Q: On July 1, Year 1, XYZ Corporation purchased as a long-term investment a $2 million face amount ABC…

A: The question is based on the concept of accounting of income from held to maturity securities. In…

Q: At what amount will Mills report its investment in the December 31, 2021, balance sheet?

A: Premium on Bond's :— It implies that Face Value of Bond is Less than Carrying Value Or Market Value…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: HodsonCorp. purchased ten $1,000 8% bonds of Eagle Corporation when the market rate of interestwas…

A: Present value: It can be defined as the current value of a series of cash payments to be made in the…

Q: On January 1, 20x1, Dagul Co. acquired 10%, P4,000,000 bonds for P3,807,853. The principal is due on…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Record the entry for the purchase of the bonds by West Company on July 1.

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: On January 1, Year 1, Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A:

Q: y 1, firm issued $500,000 of 15   year, 6 percent bonds payable for $552,325, yielding an effective…

A: Bond interest expense is the aggregate interest expense incurred during a reporting period for an…

Q: Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: anner-UNF Corporation acquired as a long-term investment $360 million of 8% bonds, dated July 1, on…

A: Disclaimer Since you have posted a question with  multiple sub-parts , we will do the first three…

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: Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July…

A: Bond :- A bond is a debt securities. On which the owner gain periodic interest. A promise by a…