On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for P1,860,000 including the accrued interest and classified it as a trading security. The debt instruments mature on January 1, 2023, and pay interest semi-annually on January 1 and July 1. On December 31, 2020, the fair market value of the instruments is 98%. On March 2, 2021, GAL Co. sold the trading security for P1,980,000. How much will be recognized as income on the 2020 income statement? a. P100,000 b. P120,000 c. P160,000 d. P280,000 e. answer not given

Q: July 1, 2019, Jelli&Tin Company purchased P500,00 face value Red Cup Company 8% bonds for P455,000…

A: SOLUTION LOSS ON SALE ON SECURITY IN 2020 = ACCRUED INTEREST UPTO FEB 1 2020 Is 1.5 MONTHS. =…

Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

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Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: On January 1, 2019, CupCompany purchased NoodlesCorporation, 9% bonds with a face value of…

A: Unrealized gain (loss) reported in other comprehensive income for the year 2019: Unrealized gain…

Q: Sheridan Company purchased, on January 1, 2025, as an available-for-sale security, $71,000 of the…

A: Available-for-sale security (AFS)An available-for-sale security (AFS) is a debt or equity security…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000.…

A: Reclassification of Debt Instrument As a result debt securities may be reclassified from the…

Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…

A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase  = P951963

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Carrying amount of bond investment = Total consideration paid - accrued interest = P910,000 - 20000…

Q: On January 1, 2019, Ondoy Company purchased $1,000,000, 12% bonds of Pepeng Company for $1,063, 394,…

A: The carrying value of the investment, classified as an investment at fair value through profit or…

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A: Under ASPE, the bond payable is recorded at the face value and the interest is computed by applying…

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A: Year Coupon @ 4.5% Present Value factor @4% Present Value Mar-20 27         0.962         25.96…

Q: from the acquisition is 8%. What is the compound journal entry to record the interest collected and…

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Q: ebt instruments mature on January 1, 2026 and pay interest annually beginning December 31, 2021. The…

A: Amortization cost  Amortized cost is the total amount of a fixed asset's reported cost that has been…

Q: What is the interest revenue reported by Giniling for the year 2019? A. P15,000 B. P18,000 C.…

A: Bond :- Bond is an instrument which is used by the Government & Companies to raise money by…

Q: On July 1, 2020, COC Company purchased P500,000 face value of ML Company's 8% bonds for P455,000…

A: A bond is an investment security which provides a fixed amount of return on its investment. Since it…

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A: Bond is a debt instrument for company through which company borrows money from investors for a fixed…

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A: Lets understand the basicsJournal entries are used to records of transactions in an accounting…

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A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: Prepare the journal entry for the scheduled interest payment on September 1, 2020 Prepare any…

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Q: interest inco

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Q: On April 1, 2019, Red Company purchased as a trading security a P1,000,000 face value 8% bond for…

A: PLEASE LKE THE ANSERS YOUR RESPONSE MATTERS   Red Company has purchased the Trading Security @ P…

Q: 00 plus accrued interest. The bonds pay interest annually on January 1.  on December 31, 2021, the…

A: When investments are accounted through fair value through profit or loss, the difference that arises…

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A: Red Company has purchased the Trading Security @ P 920,000 + 12000 + 20000(1000000*8%*3/12)(Accrued…

Q: On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation at a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed…

Q: On April 1, 2020, Q2 Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Gain on Sale of Investment = Sale Proceeds - Carrying Amount

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A: The amount by which the proceeds from the sale of investments were greater than the carrying value…

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A: Income statement refers to those financial statements which depicts the revenues and expenses of a…

Q: Black Company purchased P400,000 of 10% bonds of White Co. on January 1, 2021, paying P376,100. The…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value at the…

Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…

A: Income statement: The financial statement which reports revenues and expenses from business…