In the google form, provide the interest income to be recorded on that same day.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cashflows and selling the investment. The bonds have a total face value of P6,000,000, interest rate of 8% payable every August 1, and a remaining term of 4 years and 7 months. It paid P6,145,000 inclusive of accrued interest and transaction fee of P50,000. As of the end of the year, the bonds have a fair value of P5,960,000. What is the compound journal entry to update the carrying value of the investment and the balances of the related accounts on Dec. 31, 2021? In the google form, provide the interest income to be recorded on that same day.

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