What is the compound journal entry to record the interest collected and principal amount collected as well as the interest earned on Dec. 31, 2021?

Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A: Bonds refers to the financial instrument issued in the market to collect the funds. Interest is paid…

Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

A: Equity instruments: fair value through profit or loss (FVPL): Assets (FVPL) are recorded at fair…

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: In the google form, provide the interest income to be recorded on that same day.

A: On 01.01.2021, ABC purchased bonds and total face value = P6000000 Interest rate = 8% payable every…

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, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: The bond is an investment security which are issued by the large organisation in order to raise…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Year Cash flows (I) pvf @9% (II) (I)*(II) 2020 40000 0.9174 36696 2021 40000 0.8417 33668 2022…

Q: On Jan. 1, 2021, ABC paid P3,050,000 for a serial bond that has a face value of P3,000,000, term of…

A: Journal entries  Dec. 31, 2021 Bank(3000000 * .09) Dr. 270000 Interest income(3050000 * .08) Cr…

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: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $250 million of 8% bonds, dated…

A: Journal: Recording of a business transactions in chronological order.

Q: Identify: Investment in Bonds as of acquisition Interest income for the year Unrealized Holding…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: anuary 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s commission…

A: The comprehensive statement income includes all those unrealized income or losses which can not be…

Q: On February 18, 2021, Union Corporation purchased 1,056 IBM bonds as a long-term investment at their…

A: Adjusting Entry:- The adjusting entry are prepared at the end of the particular period when…

Q: On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturityvalue of $500,000 for…

A: Prepare amortization schedule.

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A:

Q: On Jan. 1, 2021, an entity bought an investment in bonds with a face value of P3,000,000 for…

A: Bonds are debt instruments issued to raise money from the investors. When these bonds are issued at…

Q: In 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified…

A: GIVEN: On 2021 Purchases of bonds = $300000 In 2022 market value of bonds increased to $320000 In…

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: 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: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A:

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A: Given that the company follows straight line method of amortization, under this method discount on…

Q: On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bands with face…

A: Accrued Interest is a type of interest which is calculated on the last day of Accounting Period. A…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s…

A: INITIAL RECOGNITION YEAR CASH FLOWS PVF @ 9%   2020 40000 0.9174 36696 2021 40000 0.8417…

Q: On Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The…

A: Given: The value includes face value of P2,400,000 for P2,160,000 cash. It will be paid in…

Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: A financial asset is an asset, the value of which is extracted from a contractual obligation.…

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 May 1, 2019, LAG Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Given, Purchases = P 1,860,000 Face Value = P 2,000,000 Fair value = 98%

Q: On Jan. 1, 2021, an entity bought investment in bonds and classified it as an investment at…

A: Bonds are interest-paying securities that are issued by a corporation or the government to raise…

Q: The business model for this investment is to collect contractwalcosh floWs ond sell empany purchased…

A: Purchase price of bonds 5208000 Face value of the bonds 5000000 Fair value of the bond 5300000

Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A: SOLUTION- Bonds refers to the financial instrument issued in the market to collect the funds.…

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: Sycamore, Inc. purchased €100,000 of 8 percent bonds of Alvarado Industries on January 1, 2022, at a…

A: When you own an asset that has deteriorated in value but do not sell it to realize the loss, you…

Q: On Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: For several years Fister Links Products has held Microsoft bonds, considered by the company to be…

A:

Q: On January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for…

A: To calculate initial price of bond the formula is: Price of bond=C×1-(1+r)-nr+FV(1+r)nWhere,…

Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…

A: Fair value of the Bond = P500,000 Financial asset in our question is measured at FVTPL. Any change…

Q: On 1 January 2020, Maple Ltd. purchased $500,000 of Pine Ltd. 7% bonds. The bonds pay semi-annual…

A: A.             Given        Bond Value = $500000,   Coupon Rate =7% p.a.  , Yield Rate =…

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, 2026, ABC purchased serial bonds (to be held by collecting contractual cash flows…

A:

Q: On January 1, 2026, ABC purchased serial bonds with face amount of P5M and stated interest at 12%.…

A: The market price of the bond is the price at which the market is purchased by the bondholders. The…

Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A:

Q: On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with a face value…

A: A bond is borrowing security issued by the company by signing a bond agreement in which terms and…

Q: On January 1, 2021, All-Good Company purchased a bond with face amount of P3,000,000 for P2,500,000…

A: Discount on bonds purchased = Face value of bonds - price paid = 3000000 - 2500000 = P500,000

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

A:

Q: On Jan. 1, 2021, an entity bought investment in bonds and classified it as an investment at…

A: Step 1 A financial asset is a non-physical asset whose value is derived from a contractual claim,…

Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…

A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…

Q: n January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: Date  Interest Collected   Interest  Income Amortization  Carrying Amount  1/1/2019…

Q: On January 1, 2020, MINA Company purchased, on cash basis, debt securities for P765,540. The…

A: SOLUTION AMORTIZED COST IS THAT ACCUMULATED PORTION OF THE RECORDED COST OF A FIXED ASSETS THAT HAS…

Q: On May 1, 2020, Girl Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Recognized income=Selling price-Purchase price