On July 1, 2016. Elm Company purchased cash eight P 1,000 , 9% bonds of Celebrity Corporation at P 100 plus accrued interest. The bond interest is paid semiannually each May 1 and November 1. The bond maturity date is November 1, 2017. Elm Company's annual reproting period ends December 31. Elm Company classifies this investment as trading security. At December 31, 2016 , Celebrity bonds were quoted at P 97. REQUIRED : a. Give tne entry for Elm Company to record the purchase of the bonds on July 1, 2016 b. Give the entry to record the interest collected during 2016.
On July 1, 2016. Elm Company purchased cash eight P 1,000 , 9% bonds of Celebrity Corporation at P 100 plus accrued interest. The bond interest is paid semiannually each May 1 and November 1. The bond maturity date is November 1, 2017. Elm Company's annual reproting period ends December 31. Elm Company classifies this investment as trading security. At December 31, 2016 , Celebrity bonds were quoted at P 97. REQUIRED : a. Give tne entry for Elm Company to record the purchase of the bonds on July 1, 2016 b. Give the entry to record the interest collected during 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| On July 1, 2016. Elm Company purchased cash eight P 1,000 , 9% |
| bonds of Celebrity Corporation at P 100 plus accrued interest. |
| The bond interest is paid semiannually each May 1 and November 1. |
| The bond maturity date is November 1, 2017. Elm Company's annual |
| reproting period ends December 31. Elm Company classifies this |
| investment as trading security. At December 31, 2016 , Celebrity bonds |
| were quoted at P 97. |
| REQUIRED : |
| a. Give tne entry for Elm Company to record the purchase of the bonds |
| on July 1, 2016 |
| b. Give the entry to record the interest collected during 2016. |
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