On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102. If the purchase price excludes interest, how much is the initial carrying amount of the investment? If the purchase price includes interest, how much is the initial carrying amount of the investment?
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On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102.
If the purchase price excludes interest, how much is the initial carrying amount of the investment?
If the purchase price includes interest, how much is the initial carrying amount of the investment?
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossOn January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. a.) P5,000 gain b.) P12,500 loss c.) P40,000 gain d.) P0
- On December 31, 2020, Alberta Inc. purchased $500,000, 10% bonds issued by Banff Ltd. The bonds have a maturity date of December 31, 2026. The market interest rate on December 31, 2020 was 9.5%. If Alberta Inc. accounts for this investment under the amortized cost model, what is the amount at which the Investment in Banff Ltd. Bonds will be reported on the statement of financial position at December 31, 2021, given that the current market interest rate is 9%? $519,448 $509,599 $511,050 $490,523On July 1, 2016, York Company purchased a long-term investment, P1,000,000 of Park Company's 8% bonds for P946,000, including accrued interest of P40,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2022, and pay interest annually on January 1. York Company used the effective interest method of amortization. 1. What is the interest income for 2016? a. 80,000 b. 90,600 C. 45,300 d. 40,000 2. On December 31, 2016, what is the carrying amount of the investment in bonds? a. 911,300 b. 916,600 c. 953,300 d. 960,600(C) On April 30,2020, ABC Corp. purchased bonds with a face value of P1,400,000 and interest rate of 9% to be paid annually every Dec. 31 until the end of 2024. It paid P1,360,000 plus accrued interest plus transaction fee of P10,000. What is the journal entry to record the purchase if ABC accounted it as a FA-FV-PL? Use Accrued Interest Receivable in your answer. You may use parenthetical solutions. In the google form, provide the total cash outflow relating to the acquisition.
- (C) On April 30,2020, ABC Corp. purchased bonds with a face value of P1,400,000 and interest rate of 9% to be paid annually every Dec. 31 until the end of 2024. It paid P1,360,000 plus accrued interest plus transaction fee of P10,000. What is the journal entry to record the purchase if ABC accounted it as a FA-FV-PL? Use Accrued Interest Receivable in your answer. You may use parenthetical solutions. In the google form, provide the total cash outflow relating to the acquisition. IDL On Jan. 1.2021 ARC.nurcbased bonds for then of bothOn July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0On January 1, 2021, Blue company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1and July 1. At December 31, 2021, each bonds is selling at P1,075. The debt investment is classified as at FVPL. What was the carrying value of the debt investment at December 31, 2021?
- On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value bonds for P7,383,000. The bonds were purchased to yield 10%. Interest is payable semi-annually on December 1 and June 1. On June 1, 2021, LM sold the bonds for P7,850,000. This amount includes the appropriate accrued interest. How much is the gain or loss on the sale of the debt investment?On April 30,2020, ABC Corp. purchased bonds with a face value ofP1,400,000 and interest rate of 9% to be paid annually every Dec. 31until the end of 2024. It paid P1,360,000 plus accrued interest plustransaction fee of P10,000. What is the journal entry to record thepurchase if ABC accounted it as a FA‐FV‐PL? Use Accrued InterestReceivable in your answer. Provide the total cash outflow relating to theacquisition.2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?