On January 1, 2015, LK Co purchased 5000, 5year, 9% Bonds from HM Co. at 96. Each bond costs P1000. Commission paid is P22,000. On December 31, 2015, the bonds are quoted @98, December 31, 2016, @ 102, December 31, 2017 @99 , December 31 2018 @ 101. ¼ of the bonds are sold on December 31, 2016 and the remaining on December 2018. Prepare all journal entries related to this investment assuming LK classified it as Trading Securities. Prepare all journal entries related to this investment assuming LK classified it as Available for sale Securities. How much is recognized in equity related on this investment each year assuming these are trading securities?

Q: Carla Vista Co. issues $345,000, 20-year, 9% bonds at 103. Prepare the journal entry to record the…

A: Note​ payable: Note​ payable is an instrument through which borrower obtains money from lender and…

Q: On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016.…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: journal entry        Date  Account titles & explanations  Debit  Credit…

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Ivanhoe Company issued $530,000, 10-year, 8% bonds at 103. (a)     Prepare the journal entry to…

A: Issue value of the bonds = Face value of bonds x issue price/100 = $530,000 x 103/100 = $545,900

Q: Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record…

A: Splish brothers Inc issues $257000. 10 Years 8% bonds at 99.   Bond issue value= $257000 x (99/100)…

Q: Blue Spruce Corp. issues 6400, 10-year, 8%, $1000 bonds dated January 1, 2017, at 101. The journal…

A: Answer is option a)  credit to Bonds Payable for $6400000.

Q: The Colson Company issued S$300.000 of 10% bonds on January 1, 2017. The bonds are due January 1,…

A: Semi-annual interest=Annual Interest rate2=10%2=5%

Q: On January 1, 2017, Naruto Company issued its P2,000,000, 10%, 5-year-term bonds for 1.125. Bond…

A: Issue price of the bonds means the cash received from the issue of the bonds. Issue price of the…

Q: On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bondsissued by Microsoft…

A: Correct Option is “a”: Interest Revenue. After Investing in November 2018, the interest revenue will…

Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…

A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…

Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Under straight line method, the premium or discount is amortized with equal amounts. The bonds are…

Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016.…

A: Interest on Bonds = $1,000,000 x 9%= $90,000Present Value of Bonds = Interest on Bonds x PVAF(n=5,…

Q: On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016.…

A: The initial measurement of the bonds shall be made at fair value. Fair value = Present value of cash…

Q: Pharoah Company issued $560,000, 10-year, 6% bonds at 103. Prepare the journal entry to record the…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2016, Malibu Co. purchased 1,000,000 10% bonds designated as financial asset at…

A: As per our policy, I am answering first three sub-questions. Please repost the question by asking…

Q: On April 1, 2016, Lanz Company issued at 99 plus accrued interest, 200 of its 8%, P 1,000 bonds. The…

A: Bonds are the type of debt security issued by the company having a fixed percentage of coupon rate…

Q: Lime Co. sells $600,000 of 9% bonds on April 1, 2017. The bonds pay interest on October 1 and April…

A: Given Details $600000 Bonds of 9% p.a payable semiannually - Issued by Lime Co. Bond Face Value =…

Q: Oriole Inc. issues $380,000, 10-year, 8% bonds at 97. Prepare the journal entry to record the sale…

A: Cash received from sale of bond = $380,000 x 97% = 368,600

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: 1. On January 1, 2017, Mintwood Company issued 5 year bonds with a face value of $500,000. The bonds…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Blossom Company issues $2.10 million, 10-year, 7% bonds at 97, with interest payable each January 1.…

A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $2100000*97/100 = $2037000

Q: On March 1, 2006, Cain Company issued at 103 plus accrued interest 4,000 of its 9% P1,000 face value…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: 2.  On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: Great Lake Glassware Company issues $1,050,000 of its 16%, 10-year bonds at 94 on February 28, 2024.…

A: The bonds are the debt instrument issued by corporations and government entities. The issuer makes a…

Q: Sunland Company issues $220,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the…

A: Journal entries are those which are recorded for every transaction which takes place during the…

Q: On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540.…

A: Bonds refer to the borrowing security that is issued by the company to raise finds from the market…

Q: Crane Company issued $740,000, 10-year, 5% bonds at 103.   Prepare the journal entry to record the…

A: Date Particulars Debit  Credit 1 Jan 2022 Cash (740000 x 103%) $762,200        To bonds Payable…

Q: Martinez Corp. issues 4800, 10-year, 8%, $1000 bonds dated January 1, 2017, at 103. The journal…

A: BOND IS AN INSTRUMENT OF INDEBTEDNESS OF THE BOND ISSUER TO THE HOLDERS .

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.