Pls answer number 1 and 2. Show your solution On April 1, 2016, Buguias Co. acquired 4-year bonds with a face value iPROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Interest DatsP2,000,000 and stated interest of 10% per year payable annually on Decem31. The bonds were acquired to yield 12%. The bonds are to be appropræz;P2,000,000 and stated interest of 10% per year payable annually on Deca31. The bonds were acquired to yield 12%. The bonds are to be approrclassified as financial asset at amortized cost.Questions:Based on the above data, answer the following: (Round off present value fato four decimal places)How much is the purchase price of bonds on April 1,2016?P1,884,814b. P1,878,4601.c. P1,834,814d. P1,934,814a.2.How much is the interest income for 2016?P150,000b. P169,061c. P173,911d. P85,578a.

Under AMortized cost method the bonds are o be recorded at present value of future payments…

PROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Inter. On April 1, 2016, Buguias Co. acquired 4-year bonds with a fa P2,000,000 and stated interest of 10% per year payable annually o 31. The bonds were acquired to yield 12%. The bonds are to be ap classified as financial asset at amortized cost. Questions: Based on the above data, answer the following: (Round off present to four decimal places) 1. How much is the purchase price of bonds on April 1,2016? P1,884,814 b. P1,878,460 c. P1,834,814 d. P1,934,814 a. 2. How much is the interest income for 2016? c. P173,911 d. P85,578 a. P150,000 b. P169,061

PROBLEM 15-2 Acquisition of FAAC Term Bonds in Between Inter. On April 1, 2016, Buguias Co. acquired 4-year bonds with a fa P2,000,000 and stated interest of 10% per year payable annually o 31. The bonds were acquired to yield 12%. The bonds are to be ap classified as financial asset at amortized cost. Questions: Based on the above data, answer the following: (Round off present to four decimal places) 1. How much is the purchase price of bonds on April 1,2016? P1,884,814 b. P1,878,460 c. P1,834,814 d. P1,934,814 a. 2. How much is the interest income for 2016? c. P173,911 d. P85,578 a. P150,000 b. P169,061

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1E: Parilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount....

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