On January 1, 2021, Carrots Corporation purchased, as held-for-collection investment, P60,000 of the 8%, 5-year bonds of Cabbage, Inc. for P65,118, which provides a 6% market return. The bonds pay interest semiannually. Instructions: Prepare an amortization table from Year 1 through Year 5. Show the presentation of investment account in the balance sheet as of December 31, 2023.
On January 1, 2021, Carrots Corporation purchased, as held-for-collection investment, P60,000 of the 8%, 5-year bonds of Cabbage, Inc. for P65,118, which provides a 6% market return. The bonds pay interest semiannually. Instructions: Prepare an amortization table from Year 1 through Year 5. Show the presentation of investment account in the balance sheet as of December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Carrots Corporation purchased, as held-for-collection investment, P60,000 of the 8%, 5-year bonds of Cabbage, Inc. for P65,118, which provides a 6% market return. The bonds pay interest semiannually.
Instructions:
- Prepare an amortization table from Year 1 through Year 5.
- Show the presentation of investment account in the
balance sheet as of December 31, 2023.
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