February 1, 2019 for P5,486,000 to be held as financial assets on February 1, 2023. The bonds are acquired to yield a 15% The bonds pay interest annually on February 1 and mature The fiscal period for the entity is the calendar period. On May 1, 2020, Enormous Company sold all the bonds at Enormous Company acquired P6,000,000 12% bonds on Amortization is done following the effective interest at amortized cost. da pay interest annually on February 1 and mature effective rate. The zation is done following the effective interest method. J06 plus accrued interest. Required: 1 Prepare journal entries for 2019. b. Prepare journal entrics to update the amortization and

February 1, 2019 for P5,486,000 to be held as financial assets on February 1, 2023. The bonds are acquired to yield a 15% The bonds pay interest annually on February 1 and mature The fiscal period for the entity is the calendar period. On May 1, 2020, Enormous Company sold all the bonds at Enormous Company acquired P6,000,000 12% bonds on Amortization is done following the effective interest at amortized cost. da pay interest annually on February 1 and mature effective rate. The zation is done following the effective interest method. J06 plus accrued interest. Required: 1 Prepare journal entries for 2019. b. Prepare journal entrics to update the amortization and

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Yellow Company recived issue 12% bonds with face amount of P6,000,000 maturing January 1, 2030. Interest is payable annually on December 31. The bonds are callable at 102 plus accrued interest. On January 1, 2020, the entity issued the bonds for P6,737,000 with an effective yield of 10%. The fiscal year of the entity ends December 31. The effective interest amortization is used. 1. Prepare journal entries relating to the bonds payable for 2020 2. Present the bonds payable on December 31, 2020
Dahlia Company purchased a P2,000,000 12% face value bonds, 10 years, on April 1, 2019 for P1,964,600. The bonds are dated April 1, 2019 with interest payable April 1 and October 1. Bond discount is amortized following the effective interest method. The effective interest rate is 12.40%. What is the total amortization for the year 2019? (Answer should be in two decimal places, no comma or peso sign) *
On August 1, 2021, Crane Company acquired 1310, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Crane’s available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2021 isa. Debt Investments 1310000 Interest Revenue 29475 Discount on Debt Investments 39300 Cash 1300175 b. Debt Investments 1300175 Cash 1300175 c. Debt Investments 1270700 Interest Receivable 29475 Cash 1300175 d. Debt Investments 1270700 Interest Revenue 29475 Cash 1300175
Krause Corporation issued $2,600,000, 10-year, 5% bonds for $2,470,000 on January 1, 2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2019, would be A. $130,000 B. $13,000 C. $6,500 D. $130,000
On January 1, 2021, PHILIPPINE COMPANY acquired 5-year, 15%, $8,000,000 H-bonds. The investments were acquired at aprice to yield 14%. Interest is payable annually on December 31 starting December 31, 2021. PHILIPPINES' business model isto hold the financial assets to collect contractual cash flows. QUESTION:a. Determine the initial measurement of H-bonds on January 1, 2021.b. Prepare a schedule of amortization using the effective interest method. Use the following columns:DateInterestCollectionInterestIncomeAmortizationPresent Valuec. Prepare all journal entries for 2021 and 2022 applicable to this transaction.
On June 30, 2019, ABC acquired a non-interest bearing, 3-year, P6,000,000 face value serial bonds for P4,800,000. The principal is due every June 30. What is the interest income for the year 2020?With solution and good accounting form pls thank you!
Krause Corporation issued $2,300,000, 10-year, 6% bonds for $2,231,000 on January 1, 2022. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2022, would be OA. $138,000. OB. $69,000. OC. $6,900. OD. $3,450.
On August 1, 2025, Ivanhoe Company acquired 1220, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2025, and mature on April 30, 2030, with interest paid each October 31 and April 30. The bonds will be added to Ivanhoe's available- for-sale portfolio. The entry to record the purchase of the bonds on August 1, 2025 is Debt Investments Interest Receivable Cash Debt Investments Cash 1183400 27450 Debt Investments Interest Revenue Cash 1210850 Debt Investments Interest Revenue Discount on Debt Investments Cash 1220000 27450 1183400 27450 1210850 1210850 36600 1210850 1210850
Vishnu
On January 1, 2021, Flour D Company acquired for P1,200,000 the entireP1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost.Bonds of P200,000 mature at annual interval beginning December 31, 2021.Interest is payable semiannually on June 30 and December31. Requirement a.What is the carrying value of Bonds in December 31, 2021? b.What is the interest Income to be reported in December 31, 2021? c.What is the carrying value of Bonds in December 31, 2022?
On January 1,2018 always corporation issues 3200,000 5 year 12% bonds for $3,140,000. Interest is paid semi annually on January 1 and July 1. Always corporation used the straight line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1,2019 is -12,000 -60,000 -6,000 3,000
On January 1, 2019, PPP Company purchased as a long-term investment P5,000,000 face amount of SSS Company's 8% bonds for P4,562,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2024 and pay interest annually on December 31. The interest method of amortization is used. What amount should be reported as interest income for 2020?