PUP CAF Corporation acquired a 4-year, P3,000,000 par value bonds when the prevailing rate of interest is 14% on January 1, 2020. Interests of 12% are collectible every December 31. The Company’s business model is to collect contractual cash flows and to sell the bonds when circumstances allow. The bonds were selling at 101 on December 31, 2020 and 95 on December 31, 2021. How much is the unrealized gain (loss) recognized in the statement of comprehensive income for the year ended December 31, 2021?

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

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

A: Amount to be recognised =Market value of ordinary shares -Carrying amount of bonds

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: Please include solutions!   On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

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: On January 1, 2020, Hilichurl Company purchased 4,000 of P1,000 face value, 10% bonds of Ivory…

A: The effective interest rate uses the carrying amount of the bond to calculate interest income.…

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On July 1, 2022, RED TV Company purchased 1,000 of the P1000 face value, 8% bonds for P910,000 plus…

A: It has been given that the bond is held for trading activities. Hence at year-end, the investment is…

Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

Q: On January 1, 2010, Rambutan Corporation purchased debt securities for cash of P765,540. The…

A: Rambutan Corporation purchased debt securities at P765,540 which carries the interest rate of 10%…

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

A: Carrying amount of bond investment = Total consideration paid - accrued interest = P910,000 - 20000…

Q: On January 1, 2019, Ondoy Company purchased $1,000,000, 12% bonds of Pepeng Company for $1,063, 394,…

A: The carrying value of the investment, classified as an investment at fair value through profit or…

Q: Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…

A: Bonds are a type of long-term debt that is issued by the company to capital. The bonds come with a…

Q: On January 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…

A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

Q: Tanner-UNF Corporation acquired as a long-term investment $150 million of 4% bonds, dated July 1, on…

A: This investment shall be classified on Tanner-UNF's balance sheet as Long term investment at the…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue for 2019 = P3,756,000 * 10% = P375,600 Interest received for 2019 = P4,000,000 * 9%…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: Investments by an entity During the course of economic activities of a company, it generally comes…

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

A: The answer is given below:

Q: On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000…

A: Interest revenue for 2019 = P3,756,000 * 10% = P375,600 Interest paid for 2019 = P4,000,000*9% =…

Q: On June 1, 2019, Leni Company acquired a 5-year, 10%, P1,000,000 face value bonds for P920,000. The…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per bond and classified…

A: As per the accounting standard the securities are recorded in books two ways either as held to…

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

Q: On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in…

A: A bond is a long-term financing debt. Interest (called a coupon) is paid periodically on the bond to…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: Large organization uses the bonds as a fund raising tool which offers a fixed interest rate to the…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: The amount of interest due on bonds or debentures is known as interest receivebles. The calculation…

Q: On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds…

A: Principal amount = $335,000 (335*$1,000) Market interest rate = 11% Interest = $36,850 t = 10 years…

Q: On January 1, 2020, Cullumber Corporation purchased 335 of the $1,000 face value, 6%, 10-year bonds…

A: Bond is a low risk - low return investment instrument which provides a regular interest payment and…

Q: Tanner Co. acquired $120,000 of 6% bonds, dated July 1, on July 1, 2021 by paying $100,000. Tanner…

A: Journal:- These are prepared by the companies with debit and credit sides in order to match the…

Q: Fowler Inc. purchased $75,000 of bonds on January 1, 2018. The bonds pay interest semiannually and…

A: Debt investments: The financial instruments which are bought by investors, or corporations, or…

Q: On July 1, 2020, Sprakenheit Company purchased P500,000 face value Swazzeg Company 8% bonds for…

A: Bonds: Bonds are one of the main debt sources of raising funds from the public. Company issue bonds…

Q: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid…

A: When the objective of the entity is not to hold the financial asset till the maturity and the…

Q: On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds…

A: Bonds represent high-security financial products that allow a company to acquire money and meet…

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: Where investment are classified as FVTPL, then initially the investments are recorded Fair Value .…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue for the year 2019 = Bond investment * Effective interest rate

Q: On January 1, 2019, Pancit Company purchased Canton Corporation, P1,000,000, 12% bonds for…

A: The debt investment can be defined as the money lent by the investor to firms expecting that the…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: During the course of economic activities of a company, it generally comes across, on occasions,…

Q: On January 1, 2020, Liam Company purchased bonds with face amount of P10,000,000 for P10,515,000.…

A: Bonds Face amount = P 10000000 Cash paid for bonds = P 10515000 December 31 , 2020 bonds are quoted…

Q: Tanner-UNF Corporation acquired as a long-term investment $360 million of 8% bonds, dated July 1, on…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, on…

A: The journal entry as per requirement are as follows.

Q: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

A: Given: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

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: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company…

A: Accumulated other comprehensive income (OCI) includes unrealized gains and losses reported in the…

Q: On January 1, 2019, QQQ Company purchased bonds with face amount of P5,000,000 for P4,760,000…

A: On 01.01.2019, QQQ company purchased bonds = P4760000 Including transaction cost = P160000 Face…

Q: June 1, 2022, when the prevailing market rate on similar instruments was at 14%, ABC Company…

A: An interest of 12% is paid every on every May 31. Date of purchase of bond = June 1 ,2022 Purchase…

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: On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature…

A: If the entity changes their classification from FVOCI to FVTPL then the unrealized gain/ loss are…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: A bond is a financial instrument that is issued by large business entities and government bodies to…

Q: On January 1, 2021, Jason Corp. purchased 5-year bonds with a face value of P10,000,000 and a stated…

A: When bonds were classified based on business model of collecting contractual cash flows and to sell,…

Q: On

A:

Q: uming that the compan

A: As per protocol, allowed to answer first question and post the remaining in the next submission.

Q: On January 1, 2020 Chicken Wings Company purchased P3,000,000, 8% bonds of Fried Chicken Corporation…

A: Chicken Wings purchased bonds n which generated two types of return to it. First, Chicken wings…

Q: On January 1, 2016, Covid Corp., purchased debt securities for cash of P765,540 to be held as…

A:

Q: How much should be the 2021 gain or loss on the sale of the investment?

A: Gain or loss due to the sale of the bonds which has been held by the bond investor depends upon the…

Q: n July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8%…

A: Explanation of Concept  Bond is that debt instrument which is used by the organisation to finance…

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…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,00 value bonds at 92. The company paid…

A: Interest revenue refers to the earnings which the entity makes from the investments or on the debts…