On January 1, 20x1, Pizza Co. acquired P300,000 face amount 10% bonds of Mojo, Inc. for P300,000. Pizza classifies the bonds as subsequently measured at fair value through other comprehensive income. On December 31, 20x1, the fair value of the bonds was P270,000. Pizza estimates 12-month expected credit losses of P9,000. Requirements: Prepare the journal entry to recognize the decrease in the fair value of the investment.

Q: On July 1 of Year 1, West Company purchased for cash, 24, $10,000 bonds of North Corporation to…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

A: Here in this question, we are required to make journal entry for interest payment and discount…

Q: Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires…

A: Introduction :- Ball Co. bonds with a face value of 500,000 and a 10% interest rate are purchased by…

Q: On January 1, 20x1, ABC Co. purchased 1 000 000 bonds at a price that reflects a yield rate of 14%.…

A: A bond is a promise made by the borrower, which is usually government or companies, to pay off the…

Q: Gonzalez Company acquired $183,600 of Walker Co., 4% bonds on May 1 at their face amount. Interest…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 20x1, ABC Company acquired 12% , P1,000,000 bonds. The principal is due on December…

A: Bonds are the fixed income securities issued by a corporation to raise capital without further…

Q: Assume that the bonds were classified as debt investments at fair value through profit or loss.…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On July 1, 20x7, Axe Co. received P103,288 for P100,000 face amount, 12% bonds, a price that yields…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.

Q: 27.On October 1, Dennis Company purchase P200,000 face value 12% bonds for 98 plus accrued interest…

A: 12% Bonds=P2,00,000 Brokerage fees= P700 Acquisition of bonds= ?

Q: 2 How much is the unrealized gain (loss) in 2015 to be recognized in the profit or loss? Nil c.…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Chapter 1 Instments- Additional Concepts 682 683 Disclosure of risks 12. Which of the following…

A: Question No. 9 is not clearly visible.   Answer 10:  Karter will recognize dividend Income = Total…

Q: On July 1 of Year 1, West Company purchased for cash, 8, $10,000 bonds of North Corporation to yield…

A: When a bond is purchased at a discount then, the interest income is more than the stated interest as…

Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: On July 1 of Year 1, West Company purchased for cash, eight $10,000 bonds of North Corporation to…

A: The investment in be made in bonds. The bonds make periodic interest payments and the principal is…

Q: =. The journal entry to record the purchase should include:

A: The journal entry for the debt investments have to be analysed as per the nature of its holding as…

Q: Metro Company purchased $500,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on…

A: Bonds are the financial instruments that are used by an entity to borrow funds from the financial…

Q: On 1 January 20X5, Franco Ltd. purchased $480,000 of Gentron Company 7.00% bonds. The bonds pay…

A: The bonds are issued either by corporations or government entities. The bonds pay periodic cash…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $42,975 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: On July 1, 20x3, Elsa Inc. purchased as a short-term investment a P 1,000,000 face value Anna Co. 8%…

A: We calculate the theoretical  value of bond on july 1, 20x3 to know the purchase price of bond.To…

Q: A company paid $600,000 for 1-year, 10% bonds with a par value of $600,000 on July 1. The bonds pay…

A: A record is typically kept in the ledger accounts, but it can also be kept in a specific account,…

Q: On January 1, Year 1 Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: SOLUTION- Bond: When the company needs money, the company issues fixed-income security that the…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,773,129. The bonds…

A:

Q: ksk.6

A: The objective of the question is to calculate the interest revenue for the first three interest…

Q: On January 1, year 15, Hart, Inc. redeemed its 15-year bonds of $500,000 par value for 102. They…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Rumpi Company purchased $50,000 of 7 percent bonds of Evermistress Corporation on January 1, 2015,…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: > O On January 1, $853,000, 5-year, 10% bonds were issued for $827,410. Interest is paid…

A: Par value of bond = $853000 Issue price of bonds= $827410 Discount on bonds payable= $853000-$827410…

Q: Báll Co. for P487,656. Red Co. i al to 5% of the face amount of the bon 31, 20x3 and pay annual…

A: Bonds refers to a financial instrument which reflect the promise made by the borrower to pay off the…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: On January 1, $853,000, 5-year, 10% bonds were issued for $827,410. Interest is paid semiannually on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.…

Q: Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on…

A: Interest revenue = Carrying value of Investment x market rate of interest x no. of months /12 =…

Q: On January 1, 2018, for $17.4 million, Cenotaph Company purchased 8% bonds, dated January 1, 2018,…

A: Req-1       Date  Account Titles & Explanation   Debit   Credit  June 30, 2018  Cash…

Q: Salt Foods purchases fifty $1,000, 5%, 10-year bonds issued by Pretzelmania, Inc., for $54,088 on…

A: As it is semi annual bond interest is paid twice in a year  Bond is issued at a premium of $ 4088

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: On 3/1/21, Lansing Company sold 6.5% bonds having a maturity value of $800,000 at a price which…

A: A bond issue requires multiple stages to be accounted for. An outline of the procedure is given…

Q: Required: 1. Calculate the price paid by Franco Ltd. (Do not round Intermediate calculations. Round…

A: Bond valuation is the process of determining the fair market value of a bond, considering factors…

Q: On January 1, 20x1, Eduard Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: n October 1, Dennis Company purchase P200,000 face value 12% bonds for 98% plus accrued interest and…

A: Bond: It is the certificate of income investment as a bond or debentures at a fixed rate of interest…

Q: The Wilfred Company sold 8% bonds, dated January 1, with a face amount of $90 million on January 1,…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…