Oriole Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $835,000, an amortized cost of $835,000, and a fair value of $754,000. The company believes that impairment accounting is now appropriate for these bonds.

Q: On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of…

A: Conversion of bonds refers to the process of exchanging a convertible type of asset or bond into…

Q: At December 31, 2020, the available-for-sale debt investment for Zorro Community Bancorp has…

A: Other comprehensive income is that income which is not the part of profit and loss(P/L) account.…

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: Problem 3: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds…

A: When a bond is issued at a premium, the amount is amortized over the years until maturity. A premium…

Q: A Company received P 5,300,000 for a P 5,000,000 face amount 12% bond, a price that yields 10%. The…

A: Introduction A bond is refered to as fixed income instrument that is issued by company for…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds, at their face amount, with the…

A: Definition:   Bonds: Bonds are a kind of interest bearing notes payable, usually issued by…

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

Q: Garfield Company purchased, on January 1, 2020, as an avialable -for-sale-security, $80,000 of the…

A: Journal entries are prepared to record the financial and non financial transaction of the business…

Q: On January 1, 2022, Kristine Company purchased 12% bonds with face amount of P5,000,000 for…

A: Bonds- A bond is a fixed-income tool that represents a loan made by a financier to a borrower…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of P5,000,000 for P5,500,000…

A: Investments can be done in various assets or securities. Investment in bonds is done to earn…

Q: On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: On January 1, 2020, Hole Company purchased 600 of $1,000 face value, 8% bonds of Lid Corp., for…

A: Given, Face value = $600,000 Issue price = $553,670   Discount on bonds payable = $600,000 -…

Q: In 2019, Osgood Corporation purchased $8.5 million worth of 10-year municipal bonds at face value.…

A: Loss on investment is the difference in fair value of the investment from the value it was…

Q: On January 1, 2019, Apollo Corporation purchased 4-year P8,000,000, 10% bonds at face value. The…

A: The bond was sold on 31 December 2021, which means it had a one year remaining life before maturity.…

Q: Presented below are two independent situations: (a)​Morten Corporation purchased $480,000 of its…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

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

Q: At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds…

A: If the bonds are redeemed at more than the carrying value of the bonds , the bonds are said to be…

Q: Oriole Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These…

A: Formula: Loss on impairment = PAR value - Fair value

Q: SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

Q: On September 1, 2022, when the prevailing market rate on similar instruments was at 5%, ABC…

A: DEF Corporation acquired P 50,00,000 bonds of Y company  in 1st September 2022. The bonds will be…

Q: On April 1, 2020, Purefoods Company purchased a bond for P910,000 including accrued interest and…

A: The amount by which the proceeds from the sale of investments were greater than the carrying value…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: The question is multiple choice question. On January 1, 2020, RED Company purchased 12% bonds with…

Q: On January 1, 2019, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000.…

A: Initial recognition of bonds = P4, 206,000 Interest will be paid on face value

Q: Items 36 to 39 are based on the following :On January 1, 2020, Tanzania Company purchased bonds with…

A: The business concept is to keep the asset until it is redeemed, however sales might be made to…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Formula: Gain on sale of bonds = Sale value - fair value of bonds

Q: If the bonds are classified as FA@FVTOCI, what is the amount to be recognized as fair value…

A: First we will calculate fair value of bond.

Q: An investor company purchased $491,000 of 8% bonds from the investee company on January 1, 2020,…

A: Particulars Amount Cost of Bond Investment on Jan.1,2020 $755470 Add: Amortization of Discount…

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: Vaughn Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These…

A: Impairment: This exists when the Fair value or the FV of an asset is below or lower than the…

Q: Hagar Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These…

A: a. Prepare the journal entry to recognize the impairment. Date Account titles and Explanation…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: a) prepare appropriate entry at December 31, 2016:

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: Interest income is described as the income which individual or an investor receives on the amount of…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

Q: At April 1, 2021, Candy Company sold the Sugar bonds for $3,090,000. Assuming Candy Company has a…

A: Any change in the value of Available-for-Sale Debt Securities are recorded an gain or loss…

Q: Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with…

A: Workings: Using the effective interest method:

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with…

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

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: The financial instrument is recognized at fair value and any changes in their fair value are…

Q: Landis Co. purchased €500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2021, with…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, 2021, Aruba Company purchased 10% bonds with a face amount of P5,000,000 at…

A: Unrealized gain/loss means the amount which refers to an increase/decrease in the value of…

Q: Sandhill Company purchased, on January 1, 2020, as an available-for-sale security, $69,000 of the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2021, RUDOLPH Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: Flint Company invests $10,000,000 in 6% fixed rate corporate bonds on January 1, 2020. All the bonds…

A: Available for sale instruments are recorded initially at the purchase price. However, this is…

Q: Bloom Corporation purchased $1,850,000 of Taylor Company 5% bonds, at their face amount, with the…

A: Loss on bonds arrives when the redemption value or in this case market value is less than the…

Q: Jona Company received P 5,300,000 for a P 5,000,000 face amount 12% bond, a price that yields 10%.…

A: Calculations of Interest expenses for 2020. Interest expenses = Face Amount *Bond rate…

Q: On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The…

A: The carrying amount is the value reached at after deducting the payment of principal amount from the…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: Bond is purchased by an organisation in order to invest the surplus amount in a low risk asset. The…

Q: Crane Company purchased $1190000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Sale value of bonds  $12,25,900 Carrying value of bonds  $12,30,500 Loss on sale of bonds…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: On 01.01.2020, RED purchased bonds of 12% = P5500000 which includes the transaction cost. Face value…