On January 1, 2016, Star Company received P107,720 for a P100,000 face amount, 12% bond, a price that yields 10%.  The bonds pay interest semi-annually.  The entity elects the fair value option for valuing financial liabilities.  On December 31, 2016, the fair value of the bond is determined to be P106,460.  The entity recognized interest expense of P12,000 in the 2016 income statement.  What was the gain or loss recognized in the income statement to report this bond at fair value?     13,260 loss 12,000 loss 6,460 gain 1,260 gain

Q: On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of…

A: Amount to be recognised =Market value of ordinary shares -Carrying amount of bonds

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: Cramer Company sold five-year, 8% bonds on October 1, 2016. The face amount of the bonds was…

A: Reference:Staff, M. F. (2024, March 15). How to Calculate Interest Expenses on a Payable Bond. The…

Q: On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of…

A: Conversion of bonds refers to the process of exchanging a convertible type of asset or bond into…

Q: Watney Inc. purchased $10,000 of 6% Hamel bonds at par on July 1, 2016. The bonds pay interest…

A: 1.

Q: On January 1, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A: Bonds refers to the financial instrument issued in the market to collect the funds. Interest is paid…

Q: Saratoga Company owns 80% of the outstanding common stock of Windsor Company. On May 1, 2017,…

A: Introduction:   Consolidation is a process in which financial statements of subsidiary is merged…

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On March 1, 2016, VICO Corporation issued at 103 plus accrued interest, 1,000 of its 9%, P1,000…

A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…

Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

Q: Justin acquires 90% of the voting common shares of Stevens on January 1, 2019. In 2010, Justin pays…

A: % acquired by Justin = 90%

Q: Tanner-UNF Corporation acquired as a long-term investment $245 million of 8% bonds, dated July 1, on…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Assuming the investment is appropriately recognized as financial assets at amortized cost: How much…

A: A bond is a kind of debt financial instrument that is being issued by corporations and the…

Q: On January 1, 2011, Davis Corporation issued $3,900,000 of 7% bonds at 101. Interest is paid…

A: 1. Calculate the re-acquisition price of the bonds on January 2, 2019.

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face…

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: On June 1, 2021, NEX Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: Id Co. sold $5,230,000 of 6%, 10-year bonds at 103 on January 1, 2025. The bonds were dated January…

A: Amortization -The two very distinct financial processes that are sometimes referred to as…

Q: ased 1,000 Diamond Corporation bonds in 2018 for $500 per bond and classified the investment as…

A: Reclassification adjustment is the reversal of the unrealized gain /loss identifed in OCI by…

Q: od to amortize discount or premium. On Ja Is for $258,816 after receiving interest to m 1/27 - /27 -…

A: Calculate the semiannual interest income using the effective-interest method:The effective interest…

Q: On January 1, 2017, Sarasota Corporation purchased 331 of the $1,000 face value, 9%, 10-year bonds…

A: The problem is asking us to calculate the purchase price of the bonds bought by Sarasota…

Q: Gonzales Company acquired a P5,000,000, 5-year bond on January 1, 2020, for P4,620,000. The stated…

A: It is the loss arises, when the recoverable or realizable value from the asset is lower than the…

Q: Hey Company' investments in debt and equity securities reveals the following information: a) On…

A:

Q: Cupola Fan Corporation issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2016. Debt issue…

A: 1.Prepare journal entry to record the issuance of the bonds as on 30th June 2016.

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: Bonds Payable It is the amount owed to bond holders by the issuer and is a liability account

Q: On January 1, 2017, KLM Company purchased bonds with face amount of 5,000,000. The entity paid…

A: GIVEN   On January 1, 2017, KLM Company purchased bonds with faceamount of 5,000,000. The entity…

Q: On January 2, 2018, Crane Corporation, a small company that follows ASPE, issued $1.8 million of 11%…

A: Bonds payable: Bonds payable is a type of instrument where by an amount is borrowed for a fixed…

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…

A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well.  The…

Q: 00 plus accrued interest. The bonds pay interest annually on January 1.  on December 31, 2021, the…

A: When investments are accounted through fair value through profit or loss, the difference that arises…

Q: On January 1, 2015, Marigold Corp. issued $17100000 of 10% ten-year bonds at 102. The bonds are…

A: Requirement of the question : calculation of gain/loss on reacquisition.Meaning of bonds : Bonds are…

Q: SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

Q: Jim Company issued P 4,000,000 of 8 ½%, 5- year bonds on March 1,2018. Interest payment dates are…

A: Since we answer only up to three sub-parts, we shall answer the first three. Please resubmit a new…

Q: n June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective…

A: The present value of bonds is as follows: Resultant table:

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.