On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cash flows and selling the investment. The bonds have a total face value of P6,000,000, an 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 a 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.
On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cash flows and selling the investment. The bonds have a total face value of P6,000,000, an 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 a 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual
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