On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or loss, P100,000, 14% bonds of Samjang Company for 99 plus accrued interest and broker’s fees. Interest is paid semi-annually on February 1 and August 1. Broker’s fees incident to this purchase amounted to P500. How much was the total cash payment in the acquisition of the debt investments on October 1, 2020?
On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or loss, P100,000, 14% bonds of Samjang Company for 99 plus accrued interest and broker’s fees. Interest is paid semi-annually on February 1 and August 1. Broker’s fees incident to this purchase amounted to P500. How much was the total cash payment in the acquisition of the debt investments on October 1, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2020, Beondegi Company purchased as debt investments at fair value through profit or loss, P100,000, 14% bonds of Samjang Company for 99 plus accrued interest and broker’s fees. Interest is paid semi-annually on February 1 and August 1. Broker’s fees incident to this purchase amounted to P500. How much was the total cash payment in the acquisition of the debt investments on October 1, 2020?
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