On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bands with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bands is at 108. The change in fair value of the bonds is attributable to market factors. Requirements: E. Prepare all necessary entries for calendar year 2021.
On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bands with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bands is at 108. The change in fair value of the bonds is attributable to market factors. Requirements: E. Prepare all necessary entries for calendar year 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Do it nicely.
Transcribed Image Text:On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bonds with face
amount of P1,0o00,000. The bonds were sold to yield 10%. Interest is payable semiannually every July
1 and December 31. The entity elected the fair value option for measuring financial liabilities. On
December 31, 2020, the fair value of the bands is at 108. The change in fair value of the bonds is
attributable to market factors.
Requirements:
E. Prepare all necessary entries for calendar year 2021.
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