How much is initial valuation of the bonds? How much cash was received upon the sale of the bonds? How much is the interest expense for the year ended December 31, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much is initial valuation of the bonds?
How much cash was received upon the sale of the bonds?
How much is the interest expense for the year ended December 31, 2021?
Transcribed Image Text:How much is initial valuation of the bonds? How much cash was received upon the sale of the bonds? How much is the interest expense for the year ended December 31, 2021?
On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bonds with face
amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July
1 and December 31. The entity elected the fair value option for measuring financial liabilities. On
December 31, 2020, the fair value of the bands is at 108. The change in fair value af the bonds is
attributable to market factors.
Transcribed Image Text:On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bonds with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bands is at 108. The change in fair value af the bonds is attributable to market factors.
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