On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on January 1, 2023 but interest is due annually. The effective interest rate is 12%. In 2021, ABC Co. changed its business model for managing financial assets. ABC Co. only reports annually using the calendar year. The quoted prices are 103 on December 31, 2021 and 104 on January 1, 2022. The bonds are reclassified from held-to-collect-and- sell to held-to-maturity. How much is the balance of the unrealized gain (loss) - OCl account on December 31, 2021? Round answer amount to the nearest peso.

On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal is due on January 1, 2023 but interest is due annually. The effective interest rate is 12%. In 2021, ABC Co. changed its business model for managing financial assets. ABC Co. only reports annually using the calendar year. The quoted prices are 103 on December 31, 2021 and 104 on January 1, 2022. The bonds are reclassified from held-to-collect-and- sell to held-to-maturity. How much is the balance of the unrealized gain (loss) - OCl account on December 31, 2021? Round answer amount to the nearest peso.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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