A. On July 1, 2026, ABC purchased 5,000 of the P1,000 face amount, 8% bonds to yield 10% per annum. The bonds, which mature on July 1, 2031, pay interest semiannually on January 1 and July 1. The interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2026. B. ABC purchased 8,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of the bonds on January 1, 2026 was P7,800,000. The bonds mature on June 20, 2029 and pay interest semiannually on June 30 and December 31. The entity sold 4,000 bonds on March 1, 2027 for P3,920,000 after the interest has been received. What is the amount should be recognized as gain on sale of bonds? C. On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are dated January 1, 2026, 2024, mature on December 31, 2035 and pay interest annually on December 31. The entity used the interest method. What should be reported as interest revenue for 2026?
A. On July 1, 2026, ABC purchased 5,000 of the P1,000 face amount, 8% bonds to yield 10% per annum. The bonds, which mature on July 1, 2031, pay interest semiannually on January 1 and July 1. The interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2026.
B. ABC purchased 8,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of the bonds on January 1, 2026 was P7,800,000. The bonds mature on June 20, 2029 and pay interest semiannually on June 30 and December 31. The entity sold 4,000 bonds on March 1, 2027 for P3,920,000 after the interest has been received. What is the amount should be recognized as gain on sale of bonds?
C. On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are dated January 1, 2026, 2024, mature on December 31, 2035 and pay interest annually on December 31. The entity used the interest method. What should be reported as interest revenue for 2026?
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