The Polythene Pam Company purchases P2,000,000 of bonds asset has been designated as one at fair value through profit a One year later, 10% of the bonds are sold for P400,000. Total cumulative gains previously recognized in Polythene Pam's fina statements in respect of the asset are P100,000.

Q: Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1,…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

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A: All financial assets are initially measured at fair value plus or minus, in the case of a financial…

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A: Bonds purchase value = P3000000 Annual Interest = P120000 Fair value of bonds = P2823000

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A: a. Account Titles and Explanation Debit Credit Investment in trading securities $50,000…

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Q: On January 1, 20X1, ABC acquired 5,000 of XYZ’s bonds denominated at P1,000, 12% interest rate, 5…

A: On 01.01.20X1, ABC acquired XYZ bonds = 5000 bonds Par value per bond = P1000 Total bonds acquired =…

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

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

Q: On January 1, 20x1, ABC Co. acquired 10%, P1,000,000 bonds for P827,135. The bonds mature on…

A: So we will use amortization cost method

Q: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Purchase price of bond                = P324000 Less: Accrued Interest                  = (P12000)…

Q: On January 1, 20x1, ABC Company acquired 12% , P1,000,000 bonds. The principal is due on December…

A: Bonds are the fixed income securities issued by a corporation to raise capital without further…

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A: Investment to be recycled means that the investments are to be reclassified or there lies any…

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

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

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A: Bond Valuation In the bond valuation it uses either in par value or in discount or in premium on…

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A: GIVEN   Sycamore, Inc. purchased P100,000 of 8 percent bonds of Alvarado Industries on January 1,…

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A: Non controlling interest = 25%

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…

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A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

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Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: Date Accounts Debit Credit January 2, 2022 Cash 200,000,000     Discount on Bonds 39,500,000…

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A: Introduction:- Journal entry means as follows:- Journal entry is used to record business…

Q: Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on…

A: 1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021.

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

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Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: working note: 1. calculation of decrease in the bond price. fair value of the bond as on January 2…

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

A: Solution: Purchase value of bonds = P2,000,000 Sale value of 10% of the bonds = P400,000 Purchase…

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A: Fair value reserve is a type of reserve in which the amount of cumulative net change in the fair…

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A: A bond can be valued using several methods. It can be a fair value model, market discount rate or…

Q: On July 1, 2002, Durable Company purchased Rose Corporation 10-year, 12% bonds with face value of…

A: Given information, Face Value = P300,000 Purchase Price = P324,000 Interest rate on bonds = 12%

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A: The balance sheet is one of the important financial statements that have to be prepared by the…

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A: Bonds are a type of long-term debt generally issued by companies. The issuer of bonds pays interest…

Q: digo Corporation purchased trading investment bonds for $64,000 at par. At December 31, Indigo…

A: Step 1 Journal is the part of  Book Keeping.

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

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

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

A: Cost of bonds sold  = Total bonds x 10% = P2,000,000 x 10% = P200,000

Q: The Q3 Company purchases P2,000,000 of bonds. The asset has been designated as one at fair value…

A: This question deals with the IAS 39 " Financial instruments" As per para 27 of the standard, When…

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

A: Debt Investment: It is the investment where borrower pay back investment with interest

Q: Please provide solution and explanation. Thank you.  On January 1, 20x1, ABC Co. acquired 10%,…

A: Step 1 Investment in bond is a financial asset.

Q: For the next five (5) questions: On January 1, 2022, when the prevailing market rate on similar…

A: According to this question, we need to compute the carrying amount of the Investment in bonds on…

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

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

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

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

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…

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A: Journal entries shows the recording of the transaction during an accounting year and every…