On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 12% bonds with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bonds is at 108. The change in fair value of the bonds is attributable to market factors. Requirements: E. Prepare all necessary entries for calendar year 2021. F. Compute or provide the answers for the following: 14. How much is initial valuation of the bonds?
On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 12% bonds with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bonds is at 108. The change in fair value of the bonds is attributable to market factors. Requirements: E. Prepare all necessary entries for calendar year 2021. F. Compute or provide the answers for the following: 14. How much is initial valuation of the bonds?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7C
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Bonds Payable III
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