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and December 31. The bonds were acquired to yield 10%. The bonds are to be of P5,000,000 and stated interest of 12% per ycar payable annually on On January 1, 2015, Robelyn Co. acquired a 5-ycar bonds with a total face value appropriately classified as financial asset at amortized cost. On lanuary 3, 2016, the ½ of the bonds were sold at 105. On November 1, 2016, Robelyn Co. changed its business model. It was determined that the remaining financial asset at amortized cost should be reclassified to held for trading securities on reclassification date. On December 31, 2016, the bonds are quoted at 102. On January 1, 2017, the bonds were quoted at 104.

and December 31. The bonds were acquired to yield 10%. The bonds are to be of P5,000,000 and stated interest of 12% per ycar payable annually on On January 1, 2015, Robelyn Co. acquired a 5-ycar bonds with a total face value appropriately classified as financial asset at amortized cost. On lanuary 3, 2016, the ½ of the bonds were sold at 105. On November 1, 2016, Robelyn Co. changed its business model. It was determined that the remaining financial asset at amortized cost should be reclassified to held for trading securities on reclassification date. On December 31, 2016, the bonds are quoted at 102. On January 1, 2017, the bonds were quoted at 104.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ASSUME  THAT IT WAS RECLASSIFIED FROM FVOCI TO AMORTIZED COST. Pls answer  NUMBERS 2 AND 3. Show solution

2 How much is the unrealized gain (loss) in 2015 to be recognized in the profit or loss? a. Nil b. P(179,079) C. P200,000 d. P(379,079) 3. How much is the realized gain (loss) on sale in 2016 to be recognized in the profit or loss? c. P(33,494) d. P(64,540) a. Nil b. P25,000 4. How much is the interest income for 2016? a. P265,849 b. P300,000 C. P531,699 d. P600,000 5. How much is the gain (loss) on reclassification to be recognized in the profit or loss on January 1, 2017? а. Nil b. P(24,343) с. Р50,000 d. P100,000
Transcribed Image Text:2 How much is the unrealized gain (loss) in 2015 to be recognized in the profit or loss? a. Nil b. P(179,079) C. P200,000 d. P(379,079) 3. How much is the realized gain (loss) on sale in 2016 to be recognized in the profit or loss? c. P(33,494) d. P(64,540) a. Nil b. P25,000 4. How much is the interest income for 2016? a. P265,849 b. P300,000 C. P531,699 d. P600,000 5. How much is the gain (loss) on reclassification to be recognized in the profit or loss on January 1, 2017? а. Nil b. P(24,343) с. Р50,000 d. P100,000
Reclassification of FAAC Securities PROBLEM 15-7 Initial and Subsequent measurement, Derecognition and On January 3, 2016, the ½ of the bonds were sold at 105. appropriately classified as financial asset at amortized cost. December 31. The bonds were acquired to yield 10%. The bonds are to be of P5,000,000 and stated interest of 12% per year payable annually on On January 1, 2015, Robelyn Co. acquired a 5-year bonds with a total face value January 1, 2015, Robelyn Co. acquired a 5-ycar bonds with a total face value on 0.000 and stated interest of 12% per year payable annually on pecember 31. The bondS were acquired to yield 10%. The bonds are to he apropriately classified as financial asset at amortized cost. On lanuary 3, 2016, the ½ of the bonds were sold at 105. On November 1, 2016, Robelyn Co. changed its business model. It was determined that the remaining financial asset at amortized cost should be reclassified to held for trading securities on reclassification date. On December 31. 2016, the bonds are quoted at 102. On lanuary 1, 2017, the bonds were quoted at 104.
Transcribed Image Text:Reclassification of FAAC Securities PROBLEM 15-7 Initial and Subsequent measurement, Derecognition and On January 3, 2016, the ½ of the bonds were sold at 105. appropriately classified as financial asset at amortized cost. December 31. The bonds were acquired to yield 10%. The bonds are to be of P5,000,000 and stated interest of 12% per year payable annually on On January 1, 2015, Robelyn Co. acquired a 5-year bonds with a total face value January 1, 2015, Robelyn Co. acquired a 5-ycar bonds with a total face value on 0.000 and stated interest of 12% per year payable annually on pecember 31. The bondS were acquired to yield 10%. The bonds are to he apropriately classified as financial asset at amortized cost. On lanuary 3, 2016, the ½ of the bonds were sold at 105. On November 1, 2016, Robelyn Co. changed its business model. It was determined that the remaining financial asset at amortized cost should be reclassified to held for trading securities on reclassification date. On December 31. 2016, the bonds are quoted at 102. On lanuary 1, 2017, the bonds were quoted at 104.
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