On January 1, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held financial assets at amortized cost with a 14% effective yield. Interest on bonds is payable annually on December 31 and bonds mature on January 1, 2022. The effective interest method of amortization is used. The quoted price of the bonds is as follows: December 31, 2018: 97 December 31, 2019 : 98 June 30, 2020 : 99 The carrying amount of investment on December 31, 2018 is   P3,719,620 P3,767,000 P3,814,380 P3,880,000 P4,000,000

Q: A company issues $14900000, 5.8%, 20-year bonds to yield 6% on January 1, 2019. Interest is paid on…

A: Bonds are a form of loan or debt that is taken by the business. When bonds are being sold at a value…

Q: On January 2, 2016, Banno Corp. issued P1,500,000 of 10% bonds to yield 11% due December 31, 2025.…

A: The answer is stated below:

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: On January 1, 2021, Ape

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal…

A: As per effective interest method, the amount of interest expense correlates with the carrying value…

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on…

A:

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

A: The bonds are the financial instruments for the business. The bonds are issued to raise the money…

Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

A: Journal entry is the primary step to record the transaction in the books of account. The maturity…

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

Q: 21.Refer to the information in Question No. 20. How much is the interest income for the year 2022?…

A: This post has several questions. Q21 has been answered below:

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: Compute the issue price of the bonds of Pluto corp issues P560,000 of 9% bonds, due in 9 years, with…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Presented below is a partial amortization table: Semi Annual Interest Period Jan 1, 2026 July 1,…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Braburt Co. issued $700,000 worth of six-year, five percent bonds on January 1st, 2021. Interest is…

A: A bond is a document of the bond issuer's obligation to the bondholders. Municipal bonds and bond…

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A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

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Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

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Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: One June 30,2020, Pronghorn Company issued $4,470,000 face value of 14%, 20 year bonds at $5142560,…

A: The bonds are the financial instruments that are issued to raise money from the market. The bonds…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $500,000 par value. The…

A: Since the interest is paid semi-annually, therefore the total payments, in this case, the number of…

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

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: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

A:

Q: On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…

A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…

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A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

Q: Britten plc is preparing its production budget for product A for the forthcoming year. Budgeted…

A: Budgeted number of units to be produced = Budgets sales+ ending inventory- opening inventory

Q: compute the present value of interest and the principle amount

A: Present value is the sum of present value of future cashflow discounted with the required rate of…

Q: What is the initial cost of the debt investment?   2. What is the carrying amount of the debt…

A: Initial cost of the debt investment is the cost which has been paid by the company (which is OP…

Q: On January 1, 2021, Jackie Company issued P8,000,000 8% eight-year bonds. Similar bonds had an…

A: The carrying value of bonds refers to the amount shown as liability by issuer in accounting records…