On January 1, 2022, BTS Company purchased as debt investments at amortized cost, P1,000,000 of JK Company’s 8% for 906,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2032 and pay interest semi-annually on January 1 and July 1. BTS uses the effective interest method of amortization.

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A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

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Q: On January 1, 2021, Ape

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A: The question is based on the concept of Financial Accounting.

Q: interest inco

A:

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A: Bond's purchased as available-for-sale are to be recorded at their fair value in books.

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