On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commission of P20.000) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31. 2020. Round off present value factors to four 4 decimal places and final answers to the nearest peso. If the investment is classified as financial asset at fair value through profit or loss determine the following: The amount to be recognized in 2020 profit or loss The amount to be reported on the entity’s December 31, 2020 statement of financial position is?
On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commission of P20.000) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31. 2020. Round off present value factors to four 4 decimal places and final answers to the nearest peso. If the investment is classified as financial asset at fair value through profit or loss determine the following: The amount to be recognized in 2020 profit or loss The amount to be reported on the entity’s December 31, 2020 statement of financial position is?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commission of P20.000) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31. 2020. Round off present value factors to four 4 decimal places and final answers to the nearest peso.
If the investment is classified as financial asset at fair value through profit or loss determine the following:
- The amount to be recognized in 2020 profit or loss
- The amount to be reported on the entity’s December 31, 2020
statement of financial position is?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education