REQUIRED: How much interest income should Naruto recognize for the year 2020 as a result of this investment? At what amount should the investment be shown on December 31, 2021 statement of financial position? Prepare entries in the books of Naruto relating to the foregoing for years 2022 and 2023. a. b. С.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
![On January 1, 2020, Naruto Company, a financial services firm,
purchased P100,000, face value 5-vear bond of Wolverine
Corporation for P108,660, a price that yields 5% on a stated
interest rate of 7%. Interest is payable annually at December 31.
Fair values at year-end are as follows:
105.7
December 31, 2020
December 31, 2021
December 31, 2022
December 31, 2023 106.0
106.5
107.5
Naruto's business model for managing debt securities of this
type is collecting cash flows that are salely payment for principal
and interest. Naruto did not exercise its option to measure the
investments at fair value.
Towards the end of 2022, after reviewing its strategic direction,
Naruto decides to shut down its retail mortgage business and
actively markets its debt investments portfolio in response to
profit taking opportunities.
Naruto sold the Wolverine Corporation bonds on May 31, 2023 @
106 plus accrued interest.
REQUIRED:
How much interest income should Naruto recognize for the
year 2020 as a result of this investment?
At what amount should the investment be shown on
December 31, 2021 statement of financial position?
Prepare entries in the books of Naruto relating to the
foregoing for years 2022 and 2023.
a.
b.
с.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0399aa37-24d3-457b-8df7-bafa7dc4b1c3%2Fc8f9b8e8-80a8-42b9-ad98-ae743ed42ec9%2Fo0voas_processed.jpeg&w=3840&q=75)
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