On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000. Case 1: Answer the following questions assuming the company classifies the investment as financial assets at amortized cost: How much is the December 31, 2021 interest receivable?
On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face value bonds at 92. The company paid broker's fees and non-refundable taxes amounting to P118,896. As a result, yield rate on the bond was 9%. Interests are collectible annually every May 31. The bonds were selling at 120, 105, 98 as of December 31, 2019, December 31, 2020 and December 31, 2021; respectively. On September 30, 2021, YODA sold P250,000 face value bonds for a total cost of P280,000. Case 1: Answer the following questions assuming the company classifies the investment as financial assets at amortized cost: How much is the December 31, 2021 interest receivable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2:21
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On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face
value bonds at 92. The company paid broker's fees and non-refundable
taxes amounting to P118,896. As a result, yield rate on the bond was 9%.
Interests are collectible annually every May 31. The bonds were selling at
120, 105, 98 as of December 31, 2019, December 31, 2020 and
December 31, 2021; respectively. On September 30, 2021, YODA sold
P250,000 face value bonds for a total cost of P280,000.
Case 1: Answer the following questions assuming the company classifies
the investment as financial assets at amortized cost:
How much is the December 31, 2021 interest receivable?
43,750
17,259
O 18,750
II
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