Powerpuff Company purchased the following securities during 2020, all of which are classified as financial assets at fair value through profit or loss. 1-Feb 2,000 shares of Blossom Company ordinary for P374,000. The shares represent 2% of the total outstanding shares of Blossom. 1-Apr 100 of 10% P10,000 face value Peach Company bonds due April 1, 2030; interest is payable April 1 and October 1. The bonds were purchased at 101. 1-Apr Buttercup Corporation 12% bonds; P150,000 face value, dated March 1, 2020, purchased at face value plus accrued interest. Interest is payable annually on March 1, the bonds are due on March 1, 2030. The fair values at December 31, 2020 are as follows: Blossom Company ordinary shares, P190 Peach Company Bonds, 99% Buttercup Corporation Bonds, 102% Give all entries during the year 2020, including any adjusting entries at December 31, 2020
Powerpuff Company purchased the following securities during 2020, all of which are classified as financial assets at fair value through profit or loss. 1-Feb 2,000 shares of Blossom Company ordinary for P374,000. The shares represent 2% of the total outstanding shares of Blossom. 1-Apr 100 of 10% P10,000 face value Peach Company bonds due April 1, 2030; interest is payable April 1 and October 1. The bonds were purchased at 101. 1-Apr Buttercup Corporation 12% bonds; P150,000 face value, dated March 1, 2020, purchased at face value plus accrued interest. Interest is payable annually on March 1, the bonds are due on March 1, 2030. The fair values at December 31, 2020 are as follows: Blossom Company ordinary shares, P190 Peach Company Bonds, 99% Buttercup Corporation Bonds, 102% Give all entries during the year 2020, including any adjusting entries at December 31, 2020
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Powerpuff Company purchased the following securities during 2020, all of which are classified as financial assets at fair value through profit or loss.
1-Feb 2,000 shares of Blossom Company ordinary for P374,000. The shares represent 2% of the total outstanding shares of Blossom.
1-Apr 100 of 10% P10,000 face value Peach Company bonds due April 1, 2030; interest is payable April 1 and October 1. The bonds were purchased at 101.
1-Apr Buttercup Corporation 12% bonds; P150,000 face value, dated March 1, 2020, purchased at face value plus accrued interest. Interest is payable annually on March 1, the bonds are due on March 1, 2030.
The fair values at December 31, 2020 are as follows:
Blossom Company ordinary shares, P190
Peach Company Bonds, 99%
Buttercup Corporation Bonds, 102%
Give all entries during the year 2020, including any adjusting entries at December 31, 2020
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