On January 1, 2021, JAPAN COMPANY purchased 12% bonds with face amount of $ 5,000,000 for $ 5,380,000 and it has an effective yield of 10%. Interests are payable annually on December 31 of each year. The bonds are quoted at 120 on December 31, 2021 and 115 on December 31, 2022. The business model of JAPAN COMPANY is to trade or sell the financial assets.

Q: On April 1, 2020, Lucky Corp. purchased P1,000,000 face amount 12% bonds at 94. Bonds pay interest…

A: Bonds represent the loan for the company on which a percentage of interest has to be paid by the…

Q: On Jan. 1, 2021, ABC acquired a 10%, P5,000,000, bonds that matures on Jan. 1, 2025. The interest is…

A: Given Information:  Acquisition value = P4,689,510 Effective interest rate = 12% Coupon rate = 10%…

Q: On January 1, 2020, Hilichurl Company purchased 4,000 of P1,000 face value, 10% bonds of Ivory…

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Q: Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2018, as a…

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Q: On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding…

A: Investment is the amount of money invested by an individual or entity in securities, shares and…

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

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Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

Q: Sheridan Company purchased 70 Rinehart Company 5%, 10-year $1.000 bonds on January 1, 2022, for…

A: A journal entry is a record of a business transaction in your business books. In double-entry…

Q: 12. What amount in profit or loss should be recognized in 2021 as a result of the reclassification?

A: Gain or loss due to the changes in the accounting method of recording the investment depends upon…

Q: 9. On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers to attract…

Q: On July 1, 2021, Dreeben Company acquired P600,000 (face value), 10%, P1,000 bonds at 99 plus…

A: As Given in the question Dreeben Company purchased P 600,000 (face value) at  10%, P 1,000 bonds at…

Q: In the statement of financial position of Leblanc Company as of December 31, 2020, the following…

A: Redemption of the bonds = Face value of Bonds Payable x Redemption value / 100 = P1,000,000 x 98/100…

Q: irement 1. Journalize Donahue Brothers' transactions related to the bonds for 2024. (Record debits…

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Q: Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1,…

A: Bonds Investment - It is an investment on which interest at a fixed rate is received for a specified…

Q: On January 1, 2025, Splish Company purchased $430,000, 10% bonds of Aguirre Co. for $398,350. The…

A: Tradeable assets or financial agreements between parties are referred to as financial instruments.…

Q: Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of…

A: Net liability at year end = face value of bonds - Discount on Bonds Payable

Q: On January 1, 2019, Garfield AG made an investment in €70,000 of the 9%, 5-year bonds of Chester…

A: Journal entries          Date      Accounts and…

Q: Jordan Company issues €50,000,000, 7.8%, 20-year bonds to yield 8% on July 1, 2018. Interest is paid…

A: Bonds are the debt security which is offered or issued by the corporates or the government to…

Q: On Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97 plus accrued interest. It was…

A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts…

Q: On January 1, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of…

A:

Q: interest inco

A:

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…

A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well.  The…

Q: 00 plus accrued interest. The bonds pay interest annually on January 1.  on December 31, 2021, the…

A: When investments are accounted through fair value through profit or loss, the difference that arises…

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

Q: Devon Harris Company sells 9% bonds having a maturity value of $2,984,000 for $2,661,311. The bonds…

A: Effective interest rate refers to the income that an individual receives by holding onto the bond…

Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

A: Given data, Face value of Bond=$2,000,000 Coupon rate=10% Market rate=8%

Q: At December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due…

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Q: Journal entry to record the second period of interest, June 30,  Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: On January 1, 2020, Ayayai Company acquires $300,000 of Spiderman Products, Inc., 9% bonds at a…

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Q: Recording Entries for AFS Debt Securities- Effective Interest Method Adjust FVA at Sale and Year-End…

A: Journal entry: It is prepared to record the financial and non financial transaction of the business…

Q: On January 1, 2020, Barbie Company purchased 4,000 of $1,000 face value, 10% bonds of Ken Company…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

Q: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…

A:

Q: On January 1, 2020, Pharoah Company purchased $320,000, 6% bonds of Aguirre Co. for $294,044. The…

A: Working note: Computation of carrying value of the bond investment as on December 31, 2021:

Q: Grocery Corporation received $300,652 for 12.50 percent bonds issued on January 1, 2018, at a market…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…

Q: Taylor Insurance Company invests $210,000 to acquire $210,000 face value, 5%, five-year corporate…

A: Step 1: Preparation of journal entry on December 31, 2026.Date Account Titles and…

Q: Cullumber Corporation had the following nsactions relating Jan. 1, 2022 Dec. 31, 2022 Jan. 1. 2023…

A: The issuance of bonds allows investors to lend money to an entity in return for regular interest…

Q: On J anuary 1, 2019, kelly Corporation acquired bonds wiili a face value of $500,000 for $483841.79,…

A: A journal entry is the technique through which a firm records every individual financial…

Q: Please help find issue price of bonds Requirements- Using PV function in excel calculate issue price…

A: calculation of issue price face value of bond -620,000     discount rate 10%…