On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000 for P 3,756,000. The debt investments are carried at amortized cost. The debt investments are carried at the amortized cost. The effective interest rate at that time is 10%. The bonds are dated January 1,2019and mature on December 31,2028. The bonds pay interest annually on December 31.Market quotation for the debt investment at December 31,2019 is 99.   What is the interest revenue for the year 2019?

Q: A company issues $14900000, 5.8%, 20-year bonds to yield 6% on January 1, 2019. Interest is paid on…

A: Bonds are a form of loan or debt that is taken by the business. When bonds are being sold at a value…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: A company issues $25100000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Carrying Amount of Bonds = Face Value of Bonds - Unamortized Balance of Discount. Discount on Bonds…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Face value of bond $30,000.00 Coupon rate 6% Effective interest rate 10.00% Years to maturity…

Q: On January 1, 2020, Apple Co. purchased held-for-collection and sales bonds par value $2,000,000, 9%…

A: Bond valuationwhen the market interest rate is higher than the coupon interest rate, then the bond…

Q: On January 1, 2025, Hummer Company purchased 5% bonds, having a maturity value of $500,000 for…

A: Introduction:Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds…

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for…

A: The following journal entries are passed to show the investment in bonds.

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…

A: Answer - Working Note : The computation of the interest expense is shown below:   The bond interest…

Q: On January 1, 2020, Pearl Company purchased at par 8% bonds having a maturity value of $270,000.…

A: Journal Entry: It involves keeping the records of all financial transactions of an entity. which…

Q: (a) (b) (c) Prepare the journal entry at the date of the bond purchase. Prepare the journal entries…

A: Journal is a prime book of entry.  We will pass the entries in the General Journal as under…

Q: On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for…

A: A bond amortization schedule is a table or spreadsheet that outlines the periodic payments and…

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, 2020, Ayayai Company purchased 9% bonds having a maturity value of $250,000, for…

A: Bonds are debt securities issued by governments, municipalities, corporations, or other entities to…

Q: On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2020, Marin Company purchased at par 7% bonds having a maturity value of $370,000.…

A: Date Particulars Debit Credit a. Investment in 7% bonds $370,000     Cash   $370,000   (to…

Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

Q: Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds…

A: Workings: Sold 10 % bonds

Q: A company issues $25900000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Bonds are the obligations on an entity that is to be repaid at the date of its maturity. These are…

Q: On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at…

A: Bond is a fixed income instrument which shows a loan made by investor to borrower.

Q: On July 1, 2019, Matalik Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Since effective interest rate method is being used.  As per effective interest rate method the…