Wildhorse Company purchased $1290000 of 8%, 5-year bonds from Blossom, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1339896 at an effective interest rate of 7%. Using the effective interest method, Wildhorse Company decreased the Available-for-Sale Debt Securities account for the Blossom, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $5148 and $5292, respectively. At December 31, 2021, the fair value of the Blossom, Inc. bonds was $1353000. What should Wildhorse Company report as other comprehensive income and as a separate component of stockholders’ equity?   $0     $23544     $10440     $13104

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: 6 Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1,…

A: Solution:- Given, Landis Co. Purchased = P500,000 of 8%, 5 year bonds. Bonds sold = P520,790…

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: Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%,…

A: SOLUTION- JOURNAL ENTRY  IS USED TO RECORD A BUSINESS TRANSACTION IN THE ACCOUNTING RECORDS OF A…

Q: PT ABC purchased Rp300.000 of 8%, 5-year bonds from PT DEF on January 1, 2018, with interest payable…

A: Half Year Opening Balance Interest Expense @ 3.5% Coupon Payment Amortized Premium Ending Balance…

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: Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with…

A: Other comprehensive income=Fair value of bonds-(Sales value of bonds-Amortized premiums)

Q: What is the interest revenue reported by Giniling for the year 2019? A. P15,000 B. P18,000 C.…

A: Bond :- Bond is an instrument which is used by the Government & Companies to raise money by…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds, at their face amount, with the…

A: Definition:   Bonds: Bonds are a kind of interest bearing notes payable, usually issued by…

Q: Sandhill Company purchased $3400000 of 8%, 5-year bonds from Blue, Inc. on January 1, 2021, with…

A: Given, Sales price of bond is $3,490,000 Carrying value of bond is $3,497,440   The computation is…

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: An investor company purchased $716,000 of 4% bonds from the investee company on January 1, 2020,…

A: When the corporation buys securities with the intention to resell them or not hold them till…

Q: On October 1, 2006, Brick purchased 100 of the $1,000 face value, 8% bonds of Ice, Inc., for…

A: Purchase price, including interest 1,17,000 Less:-  accrued interest -2000 Carrying Value…

Q: On Jan. 1, 2021, ABC acquired a 10%, 5-year, P2,000,000 face value bonds for trading purposes. The…

A: Given: Face Value of the bonds  1/1/2021 2000000 Coupon Rate 10% Bond Tenure in years 5…

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year…

A: Non controlling interest = 25%

Q: On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company…

A: The carrying value of a bond means the net amount between the bond's face value plus any…

Q: An investor company purchased $790,000 of 5% bonds from the investee company on January 1, 2020,…

A: An available for sale securities is a security that do not fall under either the trading securities…

Q: On January 1, 2022, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: Swifty Company purchased, on January 1, 2020, as an available-for-sale security, $90,000 of the 7%,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: ABC Company purchased $3500000 of 9%, 5-year bonds from XYZ, Inc. on January 1, 2021, with interest…

A: calculation are as follows

Q: 00 plus accrued interest. The bonds pay interest annually on January 1.  on December 31, 2021, the…

A: When investments are accounted through fair value through profit or loss, the difference that arises…

Q: Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022,…

A: Profits on readily available-for-sale securities with easily determined fair values should be…

Q: On January 1, 2020, Nash Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. The bonds…

A: Bond's purchased as available-for-sale are to be recorded at their fair value in books.

Q: On January 1, 2019, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000.…

A: Initial recognition of bonds = P4, 206,000 Interest will be paid on face value

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

A: Formula: Gain on sale of bonds = Sale value - fair value of bonds

Q: Colah Company purchased $2.4 million of Jackson, Inc., 6% bonds at their face amount on July 1,…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: On January 1, 2021, ABC acquired a 10%, 5 year, 2,000,000 face value bonds for trading purposes. The…

A: The interest income on financial instrument is recognized at effective interest rate on the fair…

Q: An investor company purchased $491,000 of 8% bonds from the investee company on January 1, 2020,…

A: Particulars Amount Cost of Bond Investment on Jan.1,2020 $755470 Add: Amortization of Discount…

Q: Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: When the sale price of bonds is greater than the book value of the bonds, then it would result in…

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A:

Q: On January 1, 2020, the Deluxe Corporation purchased equity securities to be held for trading…

A: Given, Acquisition cost of securities = P 2,000,000 Commission and taxes = P 50,000 Fair value of…

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: Gentiles Company is indebted to Israelites under a P1,000,000, 9% three-year bonds dated December…

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

Q: Garfield Company purchased, on January 1, 2017, as an available-for-sale security investment,…

A: The Amortization is defined as the method that reduces the cost value with intangible asset. The two…

Q: Blossom Company purchased $1180000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Bonds refers to the units of corporate debts which are issued by companies and also securitized…

Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: At April 1, 2021, Candy Company sold the Sugar bonds for $3,090,000. Assuming Candy Company has a…

A: Any change in the value of Available-for-Sale Debt Securities are recorded an gain or loss…

Q: anuary 1, 2020, Splish Company purchased $300,000, 6% bonds of Cabana Co. for $313,128. The bonds…

A: Amortization is an accounting procedure that is used to reduce the market valuation of a loan or an…

Q: re on January 1, 2032, but were redeemable at 101 any time after December 31, 2025. Interest was…

A: A bond is a fixed-income security that reflects an investor's debt to a borrower.

Q: Pharoah Company purchased $3200000 of 9%, 5-year bonds from Wildhorse, Inc. on January 1, 2021, with…

A: The question is based on the concept of Financial Accounting.

Q: Landis Co. purchased €500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2021, with…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Sandhill Company purchased, on January 1, 2020, as an available-for-sale security, $69,000 of the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: 2. On January 1, 2020, Novatpa Company purchased $1,000,000, 6% bonds of Aguirre Co. for $947,574.…

A: Here discuss about the details of the valuation of bond with the amortization of discount which are…

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: Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with…

A: Bonds can be define as an instrument which most commonly used by corporate entities and government…

Q: On January 1, 2019, Violet Corporation retired P5, 000,000 of bonds at P99. At the time of…

A: Given that, on January 1, 2019 Violet corporation bonds retired = P5000000 Total number of bonds =…

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: Crane Company purchased $1190000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with…

A: Sale value of bonds  $12,25,900 Carrying value of bonds  $12,30,500 Loss on sale of bonds…

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…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.