On October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interest and brokerage fees and classified them as amortized cost assets. Interest is paid semiannually on January 1 and July 1. Brokerage fees for this transaction were ₱700. At what amount should this acquisition of bonds be recorded?

Q: The Polythene Pam Company purchases P2,000,000 of bonds asset has been designated as one at fair…

A: Solution: Cost of 10% bonds sold = Total cost *10% = 2000000 * 10% = P200,000

Q: On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for…

A: In case of bond acquired between two coupon payment dates, the accrued interest is first received…

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, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires…

A: Introduction :- Ball Co. bonds with a face value of 500,000 and a 10% interest rate are purchased by…

Q: On July 1, 20x1, Santa Co. acquires P2,000,000 face amount, 10% bonds for P2,000,000 and classifies…

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

Q: On July 1, 2003, East Company purchased as a long-term investment, P500,000 face amount, 8% bonds of…

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

Q: On October 1, 2020, Kikiam Company purchased as debt investments at fair value through profit or…

A: Attributable Cost It is the cost which is  associated  directly with an investment or  cost center.

Q: On August 1, 2021, Excel Company purchased at par P5million bonds with stated interest rate of 12%…

A: Lets understand the basics. We all know that bond can be purchased at the issue time or at mid of…

Q: On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or…

A: Interest accrued on October 1, 2020 = Face value of bonds x ratre of interest x no. of months/12 =…

Q: On October 1, Dennis Company purchased P200,000 face value 12% bonds for 98 plus accrued interest…

A: held-to-maturity securities are classified under non current asset as long term investment in the…

Q: What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's…

A: When company owns more than 50% shares in other company, then the acquired company is parent company…

Q: On January 1, 2019, Demeanor Company pure with face amount of P5,000,000 to be held as fir at…

A: The answer has been mentioned below.

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

A: Ii

Q: On January 1, Year 2, Grand Company purchased as held for collection investment P1,000,000 face…

A: On December 31, Year 2: Interest receivable on bonds =1,000,000*8%=P80,000 Interest…

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year…

A: A consolidated balance sheet is acknowledged as the balance sheet prepared by a parents company…

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

A: 1. Any excess of the purchase consideration over the net assets acquired of an entity, is first…

Q: On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company…

A: The carrying value of a bond means the net amount between the bond's face value plus any…

Q: On Jan. 1, 20x1, Red Co. acquires P500,000 face amount, 10%, bonds of Ball Co. for P487,656. Red Co.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Oblivion Company purchased bonds at a discount of P100,000. Subsequently, the entity sold bonds at a…

A: Unamortized discount at the time of sale = Total discount - amortization of the discount  = P100,000…

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: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

A: Given data, Face value of Bond=$2,000,000 Coupon rate=10% Market rate=8%

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

A:

Q: On October 1, 2022, Milk Tea Company purchased a debt security having a face value of P3,000,000…

A: In case of investment  in debt security  is measured  at FVTOCI ,initially  the investment  should…

Q: On July 1, 2021, Queensland Company purchased P5,000,000 face amount 8% bonds for P4,615,000  to be…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

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: An entity purchased 4 year debt instruments with a face value of P15,000,000 on January 1, 2019 to…

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

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A:

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 January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The…

A: Bond amortization schedule (effective interest…

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A: Accrued interest is one of the current asset being held by the business. This means interest revenue…

Q: On January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The…

A: On 01.01.2019, Davao de Oro company purchased bonds of face amount = P5000000 Entity paid = P4600000…

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 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: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of…

A: Adjusting Entries- Adjusting entries refers to the entries made in the accounts at the end of the…

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

A: Date Amount collected Interest Amortization Present value 01.01.20x1 0     3807853 31.12.20x1…

Q: On January 1, 20x1, Eduard Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: On January 1, 2015, when the prevailing effective rate on similar instruments was at 7%, INC Company…

A: Bond Valuation Bond Valuation which can be made either par value or in discount or in premium as…

Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a…

A: A profit and loss financial statement that illustrates a company's revenue and spending over a…

Q: n October 1, Dennis Company purchase P200,000 face value 12% bonds for 98% plus accrued interest and…

A: Bond: It is the certificate of income investment as a bond or debentures at a fixed rate of interest…

Q: On January 1, 2021, Carrots Corporation purchased, as held-for-collection investment, P60,000 of the…

A: Bonds can be defined as an investment security which provides a fixed return on the investment with…

Q: On July 1, Year 2, San Benon Company purchased 4,000 of the P1,000 face amount, 8% bonds of Oat…

A: San Benon classifies the securities as at amortized cost. It means the interest expense will be…

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 October 2014, Nathan Company purchased a debt security having a face value of P 3,000,000 with an…

A: Calculation of Accrued Interest on the date of acquisiton (Oct 2014)  Interest on 10% bonds is…

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

A:

Q: On January 1, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

A: Working Notes :-                       Company intended to collect the principal and…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.