On January 1, 2020, Kevin Cosme acquired a P2,000,000, 10% bond for P2,159,708. The ongoing interest rate on the date of the acquisition of the bonds was 8%.Beckham classifies the bond as financial asset at fair value through other comprehensive income The fair value of the bonds at the end of each year is listed below December 31, 2020 102 December 31, 2021 98 December 31, 2022 101

On January 1, 2020, Kevin Cosme acquired a P2,000,000, 10% bond for P2,159,708. The ongoing interest rate on the date of the acquisition of the bonds was 8%.Beckham classifies the bond as financial asset at fair value through other comprehensive income The fair value of the bonds at the end of each year is listed below December 31, 2020 102 December 31, 2021 98 December 31, 2022 101

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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N6. Account
On January 1, 2020, Beckham acquired a 2,000,000, 5 year bond, 10% bond for 2,169,329. Transaction cost is 4,500. The ongoing interest rate on the date of the acquisition of the bonds was 7.8859%. The fair value of the bond at the end of each year are listed below: Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 101 98 105 A. Is the bond trading at discount or premium
Subject: acounting
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15. On Januory 1,2020, Auro Compony purchased bonds with foce voue of P5,000000 for P4,766000. the stated rate on the bonds is 10% but the bonds are aCcuired to yield 12%. The bonds mature of the rote of P1.000,000 annuoly every December 31 and the interest is payable annually also every December 31. The entity uses the effective interestmethod of omortizing disCount. Aura Compony shouid report the held to maturity bond investment on December 31,2020 at a. 4,766,000 b. 3694080 C. 4,837,920. d. 3837,920
On December 31, 2020, Phil purchased $20,000 of newly issued bonds of Texas Corporation for $16,568. The bonds are dated December 31, 2020. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirements. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Amortization of Original Issue Discount Taxpayers Basis for the Bond Year Interest Received Interest Income December 31, 2020 June 30, 2021 December 31, 2021 The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Phil must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Phil must recognize as ordinary income for the first semiannual period is Requirement…
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On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of ₱3,677,600, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 97. On April 30, 2021, the entity retired the bonds at 102. What is the gain or loss on retirement?